China manufacturing bounces back
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China’s manufacturing is set to expand in October for the first time in four months, snapping the longest contraction since 2009.
This follows a rebound in new orders and output from purchasing managers.
The latest index released by HSBC Holdings Plc and Markit Economics had a reading of 51.1 – the highest in five months.
This compares with the final reading of 49.9 for September and August. A reading above 50 indicates expansion.
The Chinese report, along with new Japanese data showing an increase in exports exceeding economists’ forecasts, signals that Asia’s largest two economies are withstanding Europe’s sovereign debt crisis.
Shares and currencies in the region advanced as the figures, and a plan by European leaders to contain the region’s financial woes, buoyed investor confidence.
HSBC’s preliminary manufacturing index, known as the Flash PMI, is based on 85 per cent to 90 per cent of the total responses to its monthly purchasing managers’ survey sent to executives in more than 400 companies.
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