Asian stocks rise on China's manufacturing growth
24 Jul 2014
Asian stocks rose today on strong Chinese manufacturing growth, Reuters reported.
The HSBC flash PMI for China stood at 52.0 for July, much higher than forecasts of a small increase to 51 in July. Analysts say there was room for positive sentiment on the outlook, as a sub-index of new orders reached 53.7.
The news helped end a sluggish session and lift China's CSI300 index of leading Shanghai and Shenzhen A-share 1.9 per cent, the report said.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent, while Australia notched up another six-year peak.
Japan's export figures continued to be lacklustre with the Nikkei down 0.3 per cent.
South Korea's benchmark index retreated 0.1 per cent after data showed economic growth at the slowest pace in over a year, leading Seoul to launch a package of stimulus measures.
Analysts say European stocks would witness a subdued start with financial spread-betters predicting losses of 0.1 to 0.2 per cent for the FTSE 100, DAX and CAC 40.
However, according to traders, money was clearly flowing back into emerging markets in search of yield.
Manufacturing in China, the world's second-largest economy, was up to its highest point following the start of 2013, according the HSBC's flash purchasing managers index, The Telegraph reported.
The PMI figure for July stood at 52 points, up from 50.7 for June and 49.4 for May with new orders and new export orders expanding at a faster pace than in June, and sub-indices for employment and prices also improved. A 50 plus figure marked expansion.
HSBC said, "Economic activity continues to improve in July, suggesting that the cumulative impact of mini-stimulus measures introduced earlier is still filtering through. We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery.''
