Hope Glimmers for Economy as China’s Manufacturing Stabilises and Syria Strike is Delayed
By Sunny Peter | September 3, 2013 2:28 PM EST
Reports of a strong manufacturing sector emanating from China lifted market spirits and held out some hope for the Australian and New Zealand currency on Monday. China is a key export market for both Australia and New Zealand which has helped sustain both the economies in recent times of turmoil. Along with the upbeat news from China was U.S. President Barack Obama's decision to seek congressional approval for possible action against Syria. It faded worries about the looming military action against the Assad regime and helped sustain riskier assets.
Showing signs of some revival, the final Chinese HSBC/Markit Purchasing Managers' Index (PMI) climbed up to 50.1 last month, rising up from July's 47.7. Reuters said, this showed the first signs of expansion in the last four months.
Earlier the official manufacturing PMI had suggested that factory activity, in August, grew at its fastest pace in more than a year. Experts believe these are signs of economic stabilisation in China.
The Australian dollar got further spur as national data showed that building approval has grown 10.8% in July. This was more than twice the increase forecasted. August saw home prices in Australia increase for the third straight month.
Both the good news - of Chinese economic stabilisation and burgeoning building approvals - enabled the Australian dollar to find some movement upwards.
However, it needs to be seen how long China's factory sector will continue to show signs of Monday's growth. Importantly, other Asian economies continue to reel under the impact of recent selloff in emerging-market assets.
The Wall Street Journal, on Monday said that, investors anticipating higher U.S. interest rates lead to the reversal of capital flows from emerging markets, which in turn, hammered the economies of nations like India and Indonesia that rely heavily on foreign investment.
To contact the editor, e-mail:
Most Popular Slideshows
- Real Life ‘Frozen’: Snow Overwhelms The US, Kills 7; More To Come (Pictures)
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
- Angelina Jolie, Brad Pitt in Sydney for ‘Unbroken’ Red Carpet Premiere [PHOTOS]
- G20 Summit Awkward Moments: Putin Yawns, Mystery Bubbles Appear, F18 Drama Ensues
Join the Conversation
- Air Canada Expands Vancouver Boeing 787 Dreamliners To Beijing, Seoul, Shanghai, Tokyo-Narita Routes
- Travel Alert: Frequent Flyer Tie-Up Between Virgin Australia, South African Airways Enhanced
- Canada Consumer Alert: Tim Hortons Prices Of Coffee, Sandwiches To Go Up Effective Nov 26
- Travel Alert: New Delta Air Lines Airbuses Could Be Seen In Australia Soon
- Product Recall: Graco Recalls Baby Strollers in Canada, U.S. Due To Amputation Risks
- Walmart Early Price Matching Special Event On Nov. 21, 2014 Matches Its Competitors' Black Friday 2014 Prices And Includes Exclusive Deals For Samsung LED HDTVs And iPad Air 2 [WATCH VIDEO]
- US Plane Flying Over Russian Skies Spotted; Vladimir Putin Ready For 'Practical Cooperation' With US
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Nexus 6 Release Date And Price Under AT&T, T-Mobile And Sprint Listed
- Cold War 2: Russia, China And North Korea’s Blacklisted Company Fortify Alliance -- Reports