|
 China's official manufacturing purchasing managers' index (PMI) rose
to 51.7 in July - the strongest since April 2012 and up from 51 in
June, the National Bureau of Statistics said on Friday. Economists
had expected a reading of 51.4.
The upbeat result was echoed in the HSBC/Markit China measure of
manufacturing which climbed to an 18-month peak of 51.7, from June's
50.7. Anything above 50 in these surveys separates growth from
contraction.
The reports added to evidence that Beijing's stimulus measures were
gaining traction in the world's second-largest economy, and followed
news that growth in the United States had rebounded from a winter
lull.
"Taken literally, these PMIs signal an exceptionally strong start
for third quarter growth in China," said Annette Beacher, head of
Asia-Pacific research at TD Securities in Singapore.
"Each time the PMIs have printed around 51 to 52 in recent years,
annual economic growth peaked at around 8 percent in the same
quarter, and so we pencil that in as a starting point."
ORDERS FLOOD IN
China was not alone in scenting better times ahead.
India's factory activity expanded at its fastest pace in 17 months
in July as firms responded to burgeoning new orders by increasing
output.
The HSBC PMI, compiled by Markit, rose to 53.0 in July from 51.5 in
June, its highest since February 2013.
"A flood of new orders from both domestic and external sources has
led to a surge in activity," said Frederic Neumann, co-head of Asian
economic research at HSBC.
"Details within the survey show that all monitored categories
witnessed a rise in output and order flows."
Adding to the promising omens for global trade, South Korea reported
exports to the United States expanded by over 19 percent in July,
the fastest clip in nine months.
Taiwanese manufacturers, who do much of the work on Apple's iPhones,
reported a robust improvement in overall business conditions in
July, with output, total new orders and new export orders rising
sharply.
All of which helped offset a disappointing reading from Japan, which
has been struggling to recover from a tax-induced slump in consumer
spending.
[to top of second column] |
The final Markit/JMMA Japan Manufacturing Purchasing Managers Index
(PMI) fell to a seasonally adjusted 50.5 in July, from a preliminary
reading of 50.8 and a final 51.5 in June.
In a brighter sign, new export orders grew for the first time in
four months, albeit modestly. Policymakers have been counting on an
export rebound to help ease the pain from the sales tax hike, but
shipments have been stubbornly weak.
PARSING PAYROLLS
For global financial markets, the quickening pulse in Asian trade
was a welcome diversion from conflict in the Middle East and
Ukraine, as well as Argentina's latest brush with default.
The U.S. factory survey from the Institute for Supply Management
(ISM) due later Friday is also expected to tick up to 56.0 in July,
which would be the best reading so far this year.
It will be preceded by the ever-influential U.S. payrolls report for
July which analysts expect will show another healthy gain of 233,000
net new jobs.
The unemployment rate is seen holding at 6.1 percent, which might be
welcomed by investors worried that further tightening in the labor
market might lead the Federal Reserve to lift interest rates earlier
than otherwise.
Those concerns were inflamed on Thursday when data showed U.S. labor
costs rose by the most in more than 5-1/2 years during the second
quarter.
They also got some of the blame for a sell off on Wall Street that
saw the S&P 500 <.SPX> suffer its biggest daily loss since April.
(Editing by Kim Coghill)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright
2014 Reuters. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.
 |
