Markets reacted well after China's gross domestic product (GDP) figures came in ahead of expectations.
Australian oil and metal stocks were the main beneficiaries of the 8.9% economic growth for the three months ended December against expectations of 8.7%.
However, Craigs Investment Partners broker Peter McIntyre said the enthusiasm of the markets disguised that China's economic growth slowed in the final quarter of last year to its lowest rate in 30 months as demand in the United States and Europe slowed and China battled inflation.
For the full year, the economy grew 9.2%, down from 2010's blistering 10.3% after communist leaders tightened lending and investment curbs to prevent overheating and inflation.
Mr McIntyre said regulators reversed course late last year after the country's manufacturers were hit by an abrupt plunge in Western consumer demand.
The Chinese central bank tried to prop up growth by promising more lending to help struggling exporters and avoid job losses and the threat of unrest.
Mr McIntyre said attention would focus on the next three months, particularly the March deadline for Greece to refinance its $US14 billion ($NZ17.65 billion) of debt.
"There are strong expectations of a further slow down in China. It's all about how the Chinese react to that. It's all dependent on euro zone issues."
