Forex Blog

September 23, 2014

China HSBC Flash PMI up to 50.5

Activity in China’s manufacturing sector unexpectedly picked up in September even as factory employment slumped to a 5-1/2-year low, a survey showed on Tuesday, a potential source of worry for Communist leaders who prize social stability above all else.

The HSBC/Markit Flash China Purchasing Managers’ Index (PMI) rose to 50.5 in September from August’s final reading of 50.2.  Economists polled by Reuters had expected factory growth to stall at 50, the level which separates expansion in activity from contraction, citing a further deterioration in business confidence and the rapidly cooling property market.

But a measure of employment shed more than a point to drop to 46.9, its lowest since February 2009 during the global financial crisis, when a collapse in exports threw tens of millions of Chinese out of work.  A hefty drop in employment could raise alarm bells for the Chinese government, which has indicated it will tolerate slower economic growth as long as employment is not affected.

Reuters

August 30, 2010

Yen Appreciation Forces Central Bank to Call Emergency Meeting

The Bank of Japan held an emergency meeting to determine a plan of attack to address the rapidly rising yen. For starters, the Bank announced that it would boost lending and would immediately supply the country’s commercial banks with 10 trillion yen ($117bn; £75bn) in a bid to halt the yen’s appreciation.

Source: BBC News

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