China's small and medium-sized factories post surprise growth, easing market anxiety | CNN Business

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China’s small and medium-sized factories showed their surprise return to expansion last month, easing market anxiety

Asian markets mostly rose Thursday following the release of the data, with sentiment also boosted by abating US debt default risks after the House of Representatives passed a bill to suspend the nation’s debt limit. The Caixin manufacturing Purchasing Managers’ Index rose to 50.9 in May from April’s 49.5, according to a private survey. This is the first improvement of the index since February and signals its return to expansion territory.

Nevertheless, the theme of reducing investment exposure to China may remain given the economy’s dissipating growth momentum and elevated geopolitical tensions, he added. Asian markets received a boost from the Caixin data. Hong Kong’s Hang Seng\n \n Index rebounded 0.9%, following a 2.4% decline on Wednesday, which was triggered by the weak official PMI data. Thursday’s gains helped the index avoid bear-market territory. Japan’s Nikkei 225\n \n rose 0.

 

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