China's manufacturing sector grew to a four-moth high in October, a level suggesting the world's second largest economy is in expansion mode. The official Purchasing Manager's Index rose to 50.2 last month versus 49.8 in September; a number above 50 indicates expansion.
"Good news slightly up several tenths to a little above 50 for a world that is hypersensitive to each little twitter in these numbers," says Chris Rupkey, chief financial economist at Bank of Tokyo Mitsubishi. "But it is hard to interpret. China has already achieved the economies of scale to supply lower-cost goods to the rest of the world."
Miller Tabak's Peter Boockvar writes, "While in line with expectations at 50.2, the Shanghai index breathed a sigh of relief that it went back above 50, and that was the catalyst for the 1.7% rally. New orders also rose back above 50 and employment was up a touch."
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