China’s manufacturing expanded and input costs climbed, underscoring the case for more interest- rate increases to tame inflation pressures in the fastest- growing major economy.
Chinese manufacturing gauges pointed to weakness in the world’s second-biggest economy that could prompt the Communist Party leadership to roll out additional support measures.
Crude oil climbed to the highest in four days as increased profit forecasts drove Asian equities higher and investors grew more optimistic that China’s growth will bolster fuel demand.
China’s yuan posted its best weekly gain since May after the government said it will prevent economic growth from dipping below 7 percent as data showed manufacturing contracted further in July.
Manufacturing strengthened from China to South Korea last month in a sign that growth risks are abating in Asia and expansion may pick up this quarter.
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories.
Two Chinese manufacturing indexes showed a slower-than-estimated pace of expansion, a signal the nation’s economic recovery may be losing steam.
"Western China holds enormous potential for automakers as incomes rise and more people can afford cars."
- Zhang Liqun on Apr 21, 2013