China’s manufacturing strengthened in August, with one index posting its biggest jump in three years, as improving demand abroad and at home underpins a recovery in the world’s second-largest economy.
An official Purchasing Managers’ Index jumped more than estimated to a 16-month high of 51.0, a government report showed yesterday in Beijing. A separate PMI released today by HSBC Holdings Plc and Markit Economics advanced to 50.1 last month from 47.7 in July, the largest gain since 2010. Readings above 50 signal expansion.
Asian stocks, the Australian dollar and copper rose after the Chinese data. Strengthening economies in the U.S. and Europe are poised to help sustain export demand in coming months, while confidence within China is also picking up after the government indicated it will defend the year’s growth goal and an interbank-market cash crunch eased.
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