“China’s manufacturing is expanding at the fastest rate in two years, according to a private survey of companies, bolstering prospects that economic growth will accelerate for a second straight quarter.
The preliminary reading of a Purchasing Managers’ Index (SHCOMP) was 51.9 in January, according to a statement from HSBC Holdings Plc and Markit Economics today. That compares with the 51.5 final reading for December and the 51.7 median estimate of 17 analysts surveyed by Bloomberg News.
The data suggest that China’s expansion at the start of 2013 will equal or exceed its 7.9 percent clip in the fourth quarter. Sliding Japanese exports and below-forecast growth in South Korea reported today underscore Asian economies’ dependence on China as austerity measures in Europe limit demand.
“Despite the still-tepid external demand, the domestic- driven restocking process is likely to add steam to China’s ongoing recovery in the coming months,” Qu Hongbin, HSBC’s chief China economist in Hong Kong, said in a statement.
Asian stocks extended losses after North Korea threatened to conduct a nuclear test. The Shanghai Composite Index fell 0.8 percent, retreating from gains of as much as 1.8 percent. The MSCI Asia Pacific Index of stocks dropped 0.1 percent as of 4:05 p.m. Tokyo.
