Key economic indicators across Asia continue to show disappointing results, with the latest factory activity survey showing deterioration and little sign of recovery in November.
China’s factory data sunk to a three-year low, as the the official purchasing managers’ index (PMI) fell to 49.6, down from the previous month’s reading of 49.8. These figures mark the fourth month of shrinking factory activity in the world’s second largest economy. A reading below the 50-mark on the PMI survey indicates contraction in the sector, while one above suggests growth.
Recent figures also shown that South Korea’s exports fell by 4.7 percent from a year earlier, contracting for the 11th month.
The figures come as speculation increases over the US rate rise, which is expected to be announced at the Federal Reserve’s December meeting later this month. There is hope that this may remove some of the uncertainty in currency and stock markets.However, Asian exporters will be hoping that the move benefits the US, and doesn’t risk damaging their economy and affecting demand for exports.
However, Asian shares seemed to have shrugged off the news this morning, with the Shanghai Composite reversing early losses to rise 0.2 percent, with the Hang Seng index also up by 1.9 percent. Japan’s benchmark index closed up 1.3 percent, breaching the key psychological level of 20,000 for the first time in over three months.
01/12/2015
