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2 Nov 2015
CNY: Chinese data indicates stabilising economy - MUFG
FXStreet (Delhi) – Derek Halpenny, Research Analyst at MUFG, suggests that the general picture from today’s Chinese data report and from the Caixin PMI Manufacturing index (up from 47.2 to 48.3) is that the economy is stabilising.
Key Quotes
“China and Japan equity markets are lower today in part on disappointment that the official Manufacturing PMI from China remained below the 50.0 level at 49.8, a little weaker than expected.”
“New orders did rise in the official report although export orders weakened. The Caixin report showed new export orders rising for the first time since June – so all in all there is at least evidence that the manufacturing sector in China is at least stabilising. If that is confirmed in other official data over the coming week or so it would clearly help support investor optimism over the outlook for economic growth in China.”
Key Quotes
“China and Japan equity markets are lower today in part on disappointment that the official Manufacturing PMI from China remained below the 50.0 level at 49.8, a little weaker than expected.”
“New orders did rise in the official report although export orders weakened. The Caixin report showed new export orders rising for the first time since June – so all in all there is at least evidence that the manufacturing sector in China is at least stabilising. If that is confirmed in other official data over the coming week or so it would clearly help support investor optimism over the outlook for economic growth in China.”