Asia stocks up on good China, Europe economic data

Published on NewsOK Modified: August 23, 2013 at 12:29 am •  Published: August 23, 2013
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BANGKOK (AP) — Asian stock markets rebounded Friday after encouraging economic data from China and Europe raised hopes that a global economic recovery was underway.

A survey released Thursday by HSBC Corp. indicated that manufacturing in China had expanded in August, the latest evidence that the world's second-largest economy may be over its recent weakness. HSBC's preliminary purchasing managers index rose to 50.1 from July's 47.7 — crossing the critical 50 threshold to indicate an expansion in activity.

"This should reassure even the most bearish that China has avoided a hard landing for now," Qinwei Wang of Capital Economics wrote in an email commentary.

Japan's Nikkei 225 index jumped 2.8 percent to 13,738.82. Australia's S&P/ASX 200 advanced 1 percent to 5,128.70. South Korea's Kospi added 1.4 percent to 1,874.39. Hong Kong's Hang Seng rose 0.6 percent to 22,013.31.

Sam Le Cornu, portfolio manager at Macquarie Funds Group in Hong Kong, said the data supported arguments that the world's No. 2 economy should meet Beijing's official target of 7.5 percent growth for the year.

"For China specifically, the fundamentals remain sound," he said.

Additional good economic news came from Europe, where manufacturing and services for the 17 countries that use the euro climbed to its highest level since June 2011.