HONG KONG: Asian markets swung Thursday morning after a surprise pick-up in Chinese factory activity that indicated stability in the world’s number two economy but fuelled fears authorities will hold off fresh stimulus.
Trading was cagey across the region following oil-linked losses in New York and ahead of Friday’s closely watched US jobs report that could precipitate another Federal Reserve interest rate hike.
Beijing said its purchasing managers index of manufacturing activity hit 50.4 last month, its highest level since October 2014 and suggesting the economy is stabilising following a series of policy tweaks aimed at kick-starting growth.
The reading was sharply up from July’s 49.9 and confounded expectations for a drop to 49.8 in a survey for Bloomberg News. Anything above 50 marks growth and a figure below points to contraction.
Analysts said recent weak PMI data had been skewed by severe floods in China that had hit key manufacturing areas.
