A Chinese manufacturing index (SHCOMP) rose to a six-month high in September, signaling that a rebound in the world’s second-largest economy is gaining steam.
The Shanghai Composite Index and Australian dollar rose on optimism that China’s growth is picking up, boosting Premier Li Keqiang’s odds of meeting the year’s 7.5 percent expansion goal. The government’s broadest measure of credit rose more than forecast in August, indicating that leaders are committed to achieving targets even at the cost of adding financial risks.
“China’s growth rebound has continued to gather some momentum, especially in exports,” said Wang Tao, chief China economist at UBS AG in Hong Kong. Today’s reading “adds further support” to UBS’s previous increase in its third-quarter growth forecast to 7.7 percent from 7.5 percent, Wang said.
