From the lowest print in 12 months at 47.7 in July, HSBC's China Flash PMI just printed at 50.1 (massively outdoing the expected 48.2) and jumping by its most in three years month-over-month. It's a miracle, we hear you cry (especially given that CAT Asia/Pac sales collapsed 28% YoY)... In spite of new export orders dropping at a faster rate than last month and employment decreasing at a faster pace, it seems there was enough inventory decompression and 'output' to signal 'stability'. This, of course, pours cold water on those hoping for another huge stimulus plan to build more railroads (and the market's initial 3 point jump has already faded gloriously into the night).
quite an impressive spike MoM for an economy on its heels, in need of liquidity injections, and an EM crisis crushing demand?
But hey, who are we to question the reversion to government facts...
S&P futures jumped modestly and then reverted back lower but JPY is on a tear... though still disconnected from its equity market cousin...
Source: Markit Economics