China PMI Weak, Hong Kong Surges
November 30, 2011 by Douglas A. McIntyreChina’s PMI showed a significant slowing. That did not keep the Hang Seng from 5.3% as news that the Fed and other central banks would coordinate inexpensive dollar access. That news caused rallies of over 3% among indices in Europe and America. The DJIA was up 400 points most of the day.
According to MarketWatch
China’s manufacturing contracted slightly in October, according to a government-sponsored survey released Thursday. The China Federation of Logistics & Planning reported its manufacturing Purchasing Managers’ Index fell to 49.0, below the previous month’s 50.4 reading and less than the 50 level that separates contraction from expansion. The result missed a 49.7 forecast from a Dow Jones Newswires survey
The Hang Seng traded up 5.2% with another impetus being the easing of credit by mainland banks. This is viewed as a form of stimulus to help offset the slowing confirmed by October PMI.
The Nikkei 225 also rose early in the session by 2.13% to 8,614.
The Asia rally should last the session, and then the challenge will be for Europe markets to ignore the deep troubles there.
Douglas A. McIntyre
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