AFP, 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.
“Underlying demand continues to stabilise, suggesting that the expansionary fiscal policy stance adopted since early this year is still supporting growth,” Julia Wang, an economist with HSBC in Hong Kong, told Bloomberg News.
China’s economy is growing at its slowest rate for a quarter of a century.
But Zhu Qibing, chief macro economy analyst at BOCI International (China) in Beijing said the “People’s Bank of China will refrain from more easing, but won’t tighten immediately”.
In early trade, Hong Kong was up 0.2 percent but Shanghai eased 0.2 percent with both markets seeing early volatility.
Tokyo rose 0.1 percent by the break, with a weaker yen keeping the Nikkei just above water. But Sydney fell 0.3 percent and Seoul was off 0.4 percent while Wellington, Taipei and Manila also sank.
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.
“Underlying demand continues to stabilise, suggesting that the expansionary fiscal policy stance adopted since early this year is still supporting growth,” Julia Wang, an economist with HSBC in Hong Kong, told Bloomberg News.
China’s economy is growing at its slowest rate for a quarter of a century.
But Zhu Qibing, chief macro economy analyst at BOCI International (China) in Beijing said the “People’s Bank of China will refrain from more easing, but won’t tighten immediately”.
In early trade, Hong Kong was up 0.2 percent but Shanghai eased 0.2 percent with both markets seeing early volatility.
Tokyo rose 0.1 percent by the break, with a weaker yen keeping the Nikkei just above water. But Sydney fell 0.3 percent and Seoul was off 0.4 percent while Wellington, Taipei and Manila also sank.
