• Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Archives
    Archives Contains a list of blog posts that were created previously.
  • Login
    Login Login form

Asia Stocks live blog: China’s data, Japan’s festival

Photo shared by on in Market Research
  • Hits: 884

The downward revision to HSBC’s Chinese manufacturing data has surprised the market, with the result countering the stabilizing trend suggested in the government version of the same data.


Kim Eng Securities strategist Andrew Sullivan summarizes the problem in a note out this morning: “The questions now is, which way is the trend?”

Last week, China’s official Purchasing Managers Index (PMI) reading showed a second successive pick-up in April, rising to 50.4 from 50.3 in March, more or less in line with market expectations.


But HSBC’s China PMI — which rose to 48.1 from March’s 48.0 — focuses on the small and medium-sized enterprises, while the official data focuses on state-owned enterprises. So, Sullivan said, HSBC’s disappointing reading may only reflect that the SME’s are suffering, while the SOE’s are stabilizing.


Nonetheless, he said, the weak data from HSBC might prompt some more stimulus from the government over the coming months.


TD Securities strategist Annette Beacher didn’t seem too worried about the data, maintaining a forecast for China’s GDP to grow 7.5% during the current June.

Despite the disappointing result, she wrote, there might not be any howls of “Chinese hard landing” as it seems clear that HSBC PMI readings of between 48 and 50 are consistent with GDP growth of 7.25% to 7.5%, bang on the government’s target for this year of about 7.5%.



Rate this blog entry:


airs logo

Association of Internet Research Specialists is the world's leading community for the Internet Research Specialist and provide a Unified Platform that delivers, Education, Training and Certification for Online Research.

Get Exclusive Research Tips in Your Inbox

Receive Great tips via email, enter your email to Subscribe.

Follow Us on Social Media