Chinese manufacturing activity has climbed to a three-month high, assuaging economists' fears that the country's slowdown is accelerating.
According to the state-sanctioned China Federation of Logistics and Purchasing's monthly purchasing managers' index (PMI), October rose to 50.2 from September's 49.8.
The PMI system works in such a way that readings lower than 50 indicate contraction and those higher mean expansion – and therefore this latest PMI puts the world's second-largest economy's manufacturing sector back into a state of growth.
This report comes one week before a once-in-a-decade change in leadership, ending current premier Wen Jiabao's tenure on a positive note and starting his successor's rein on the right foot.
At 08:40 GMT today (November 1st), the Shanghai SSE Composite rose by 1.7 per cent to an index value of 2104.4 points and the Hong Kong Hang Seng was up by 0.8 per cent to 21821.8 points.
Find the latest spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.