Asian markets mostly rose Wednesday after forecast-beating Chinese factory data raised hopes for the world’s number two economy, but gains were limited following soft leads from Wall Street and Europe.
China said Wednesday that its purchasing managers’ index of manufacturing activity held up in May, beating expectations for a decline.
The reading indicated the sector continues to grow and suggests the economy is feeling the benefit of a pick-up in global demand.
China’s growth slowed to its weakest level in a quarter of a century in 2016. It is expected to ease this year as leaders try to address huge debt piles and recalibrate from trade and investment to consumer demand as the driver of expansion.
“The global economy will continue to recover and that’ll bolster Chinese manufacturers,” Tommy Xie, an economist at OCBC Bank in Singapore, told Bloomberg News. “But the deleveraging campaign will inevitably slow growth as tightening measures have already pushed up borrowing costs for factories.” —AFP