Asian stocks rose back as China’s manufacturing unexpected expanded and after the Federal Reserve maintained its bond-buying program at current levels. The MSCI Asia Pacific Index climbed 1.2%, headed for the biggest gain since July 11. China also reported increase in manufacturing, a manufacturing index published by the Chinese authorities on Thursday provided an unexpectedly solid reading for July but did little to dispel the picture of an economy that is cooling more rapidly than many analysts had expected just months ago.
The MSCI Asia Pacific Index advanced 1.2 percent to 133.85 as of 7:23 p.m. in Tokyo, with all 10 industry groups on the gauge rising. Almost three shares gained for each that fell on the measure, which is headed for a 1.1 percent loss this week. Futures on the Standard & Poor’s 500 Index added 0.7 percent according to business-standard.com.
On a published report, Standard & Poor’s stated warning that many of the weaker players in the property sector a key pplayer of the Chinese economy, the world’s second-largest after that of the United States
“could find it more difficult or costly to borrow this year if the central government takes further steps to rein in ‘shadow banking’ activities,” which it said were a major source of funding for developers that could not secure bank loans.
The Commerce Department said Wednesday that the economy grew at a 1.7% annual rate in the April-June quarter, better than a revised 1.1% rate for the first quarter. Separately, a private survey from payroll company ADP showed that U.S. businesses created 200,000 jobs this month.