China producer price index up 8.1 percent in April

China's retail consumer prices rose 8.3 percent in March, a slight decline from February's 8.7 percent gain, which was the highest inflation rate in nearly 12 years. Earlier this week, comments by officials suggesting a further drop-off in inflation rate prompted a surge in share prices.

Investors reacted swiftly to Friday's news. The benchmark Shanghai Composite Index dipped by as much as 2.9 percent but recovered some lost ground to close at 3,613.49, down 1.2 percent from Thursday.