Chinese manufacturing resumed expansion this month after shrinking the most in almost a year in July and output at European factories and services companies improved, a sign the global recovery is strengthening.
Ken Peng, a Beijing-based economist at Citigroup Inc., forecast the yuan will rise 1.8 percent against the dollar this year after the central bank pledged to manage it against a basket of currencies with greater flexibility.
China eliminated the lower limit on lending rates offered by the nation’s financial institutions as economic growth slows and Premier Li Keqiang expands the role of markets in the world’s second-biggest economy.
Chinese manufacturing indexes showed small businesses struggling, sapping momentum in the economy and underscoring the need for the government to shift support away from larger, state-backed companies.
China’s commerce minister said his nation’s economy is heading for a rebound this month following government measures to support growth, adding to signals of confidence among officials that the slowdown is ebbing.