* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* China GDP grows 6.4 pct, industrial output surges in March
* Nikkei edges up to highest since December
* NZ dollar, bond yields dive on soft inflation data
By Wayne Cole
SYDNEY, April 17 (Reuters) - Asian share markets swung higher on Wednesday as a raft of Chinese data easily beat expectations in a sign Beijing's policy stimulus may finally be gaining traction in the world's second-largest economy.
Investors were hoping for better news from China and were not disappointed with first-quarter economic growth pipping forecast at 6.4 percent.
More importantly industrial output surged 8.5 percent in March from a year earlier, blowing away forecasts of a 5.9 percent increase. Retail sales also pleased with a rise of 8.7 percent. reacted immediately by buying the Australian dollar, often a liquid proxy for China plays, which pushed up 0.3 percent to a two-month top at $0.7206 AUD=D3 .
Japan's Nikkei .N225 added 0.5 percent to reach its highest in almost five months, while E-Mini futures for the S&P 500 ESc1 rose 0.2 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.2 percent to near its highest since July.
"This suggests that policy measures introduced by Chinese officials last year are now bearing fruit," said Rodrigo Catril, a senior forex strategist at National Australia Bank.
"We had positive surprises on credit data and housing data last week and now GDP has come in better than expectations, which is building the case that a recovery is on the way," he added. "We see the revival of the Chinese economy as a necessary condition for an improvement in global growth outlook."
In currency markets, the dollar finally managed to top resistance on the yen at 112.13 to reach its highest since December at 112.16 JPY= . It was last at 112.02.
The dollar was flat on a basket of currencies at 96.991 .DXY , still within the 95.00 to 97.70 range that has held for the past six months.
The euro edged up a touch to $1.1298 EUR= , having slipped form $1.1314 overnight on a Reuters report that several European Central Bank policymakers think the bank's economic projections are too optimistic. currency on the move was the New Zealand dollar NZD=D3 which sank as far as $0.6668 after annual consumer price inflation came in well below expectations at just 1.5 percent for the first quarter. L3N21Y4Y3
Yields on two-year bonds NZ2YT=RR dived 9 basis points to 1.48 percent as investors wagered the Reserve Bank of New Zealand (RBNZ) would have to cut rates in response.
The improved Chinese data later gave it a helping hand back up to $0.6723.
In commodity markets, the general improvement in risk sentiment saw spot gold slip to its lowest for the year so far and was last at $1,276.61 per ounce XAU= .
Oil prices were buoyed as fighting in Libya and falling Venezuelan and Iranian exports raised concerns over tightening global supply. O/R
U.S. crude CLc1 was last up 48 cents at $64.53 a barrel, while Brent crude LCOc1 futures rose 27 cents to $71.99.
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