Asian markets held up the day following a $574 billion loss globally as Chinese statements denied rumors of further stimulus to the economy from the People's Republic. The MSCI Asia Pacific excluding Japan index was narrowly changed at 11:29am in Hong Kong, trimming losses of up to 0,3 per cent. Copper climbed 0,6% after a four-day decline.
What restored confidence in the markets was the so-called "flash purchasing managers index" which grew to 50.5 from 50.2 in August. The data is in contrast with the forecasts of economists who had predicted a decline to 50, or the border between contraction and expansion.
This data "is very encouraging, even if it does not completely dispel the concerns on the Chinese front because we have seen a decline in almost all the main indicators" comments Desmond Chua, strategist at CMC Markets in Singapore. “We are also seeing an automatic rebound in the Australian dollar (up to 88.92 cents on the US dollar) and this is not surprising because the level in recent days was pricing in a very weak Chinese manufacturing number”.
On a day when Japanese markets were closed for a holiday, the Hang Seng Index, which has risen only four times in the past 15 days, fluctuated between gains and losses. The Hang Seng China Enterprises Index (which comprises Chinese companies listed in Hong Kong) was up 0,1% after closing at a two-month low yesterday. The Shanghai Composite advanced 0,5 percent.
