Activity in China’s factory sector expanded for the first time in six months in June, according to the HSBC/Markit Flash China Manufacturing Purchasing Managers' Index (PMI)
Reuters reports that the Flash PMI for June came in at to 50.8. (Figures above 50 indicate expansion while figures below 50 correspond with contraction in the sector). The Final PMI for May was 49.4.
The result means that this was the first month of expansion for the sector since December last year.
Commenting on the result, Qu Hongbin, chief economist for China at HSBC said, "This month's improvement is consistent with data suggesting that the authorities' mini-stimulus are filtering through to the real economy."
The ABC reports that the Australian dollar and share market have both jumped as a result of the news from China.
In addition, the strong result lifted Australia's major resources firms, which were already higher in early trade after Chinese iron ore spot prices jumped 1.5 per cent on Friday to $US92.10 a tonne.