Newscasts - Asia Markets Briefing: China's factory activity returns to expansion in a sign of economic improvement
01/11/2024 09:05
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_texagzdt&referenceId=1_texagzdt&pageId=Newscasts Source: 'Reuters - Business videos' Description: China's manufacturing activity swung back to growth in October as an expansion in new orders led to a pick-up in production growth. Caixin China manufacturing PMI for October came in at 50.3, according to a private survey beating estimate of 49.7 in a Reuters poll of economists. Short Link: https://refini.tv/48tDyag Video Transcript: China's factory activity returns to expansion in a sign of economic improvement. Welcome to Asia Markets Briefing. I am Ludovica Brignola. China's manufacturing activity swung back to growth in October as an expansion in new orders led to a pick-up in production growth. Caixin Manufacturing PMI for October came in at 50.3, according to a private survey, beating estimate of 49.7 in a Reuters poll of economist and rebounding from September's 49.3. And prices of new homes in China rose at a faster pace in October. That is traditionally a peak season for house hunting. This suggests that recent support measures could be having some early impact in a crisis-hit market. Both readings echo an official survey on Thursday, which should manufacturing activity expanded for the first time since April. Equity markets were little changed in Mainland China but positive in Hong Kong. Concerns over the US presidential election next week kept gains on check. The Nikkei in Japan plunged more than 2%. And that was as Japan's factory activity shrank at the fastest pace in three months in October, as weak domestic and overseas demand hurt sales and output. The final Manufacturing PMI fell to 49.2 in October from 49.7 in September. It was slightly up though from 49 reported in the flash reading. The IMF said that risk to Asia's economy have increased from escalating trade tensions. China's property sector worsened the potential for further market turbulence. It also urged Beijing to take steps to achieve a more demand-driven recovery for its economy. And let us go to corporate news now, and Nomura more than doubled its quarterly profit, marking its sixth straight quarter of growth. That was bolstered by a strong performance at its wholesale business, even if the bank was impacted by a trading scandal. And another good sign for Mitsubishi, the Japan's trading house posted net profit of JPY618 billion for the six months to September, up 33% from a year earlier, driven by lower Yen and divestments. A look at oil prices which climbed more than $1 a barrel to pare weekly losses, as geopolitical tensions in the Middle East rose. This after reports that Iran was preparing a strike on Israel from Iraq in the coming days. And a look at next week, and Toyota's Q2 profits probably fell for the first time in two years, as its output was hurt by a vehicle testing scandal and higher selling expenses. Honda, on the other hand, could be a bright spot for Japanese automakers, thanks to a robust sales outlook in Japan and the US. Nintendo will also report on Tuesday and Sony on Friday. And that is it from your Asia Markets Briefing