World stocks as­cend as China man­u­fac­tur­ing in­dex in­creases

The China Post - - BUSINESS INDEX & -

World stocks rose Thurs­day af­ter a main­land Chi­nese man­u­fac­tur­ing in­dex im­proved and buy­ing ap­petite strength­ened af­ter sub­stan­tial falls in stock prices in the past quar­ter.

Ger­many’s DAX rose 0.9 per­cent to 9,747.25 and France’s CAC-40 gained 1.4 per­cent to 4,516.12. Bri­tain’s FTSE 100 climbed 1.3 per­cent to 6,136.84. Fu­tures pointed to more gains on Wall Street af­ter Wed­nes­day’s re­bound. Dow fu­tures added 0.8 per­cent to 16,294 and S&P 500 fu­tures rose 0.7 per­cent to 1,922.80.

In Asia, Ja­pan’s Nikkei 225 jumped 1.9 per­cent to 17,722.42 as the yen weak­ened against the U.S. dol­lar, giv­ing a boost to ex­porter stocks. Mar­kets in Hong Kong and main­land China were closed for hol­i­days. South Korea’s Kospi rose 0.8 per­cent to 1,979.32 and Aus­tralia’s S&P/ASX 200 ad­vanced 1.8 per­cent to 5,112.10. Mar­kets in South­east Asia were mostly higher.

An of­fi­cial man­u­fac­tur­ing in­dex based on a sur­vey of fac­tory pur­chas­ing man­agers edged up to 49.8 in Septem­ber from Au­gust’s 49.7, which was the low­est level since Au­gust 2012. Num­bers be­low 50 in­di­cate con­trac­tion. A sep­a­rate man­u­fac­tur­ing in­dex com­piled by fi­nan­cial mag­a­zine Caixin and Markit fell to 47.2 in Septem­ber from 47.3 in Au­gust. But the fig­ure was bet­ter than the pre­lim­i­nary re­sult of 47.0 re­leased on Sept. 23. China’s eco­nomic growth held steady at 7 per­cent in the latest quar­ter end­ing in June, which was the weak­est per­for­mance since the 2008 global cri­sis.

The Bank of Ja­pan’s “tankan” busi­ness con­fi­dence sur­vey pro­vided mixed mes­sages about the Ja­panese econ­omy. Sen­ti­ment of ma­jor man­u­fac­tur­ers fell though re­mained mod­estly pos­i­tive over­all. Other in­di­ca­tors, such as prospects for prof­its and plans for con­struc­tion spend­ing, were pos­i­tive, pro­vid­ing some hope for an econ­omy strug­gling to rise out of two decades of stag­na­tion and de­fla­tion.

“There has been a grow­ing feel­ing in the mar­kets that while the global out­look has dimmed some­what, the cur­rent vir­u­lence of the sell-off was some­what over­done,” said An­gus Ni­chol­son, mar­ket an­a­lyst at IG in Sin­ga­pore in a re­port. “It would be easy to be overly cyn­i­cal about the Chi­nese (man­u­fac­tur­ing in­dexes) to­day. They were still ob­jec­tively weak and one could still beat up the data or ac­cuse the Chi­nese gov­ern­ment of mak­ing it up. Nonethe­less, the mas­sive sell­off seen in global eq­ui­ties since the start of Au­gust was driven by two key fac­tors: con­cerns about the China slow­down and ner­vous­ness about the Septem­ber Fed meet­ing.”

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