Stephen Inis, Axi Corp’s chief global market strategist, wrote in a research note Monday that Trump’s comments were “long in favor of criticizing China but short in favor of action.”
“The prospect of reopening is well-known,” Ince wrote.
New data from China indicate that factories have begun recovering from the epidemic.
A closely monitored private survey found that manufacturing activity in the country increased unexpectedly last month. On Monday, media group Coxin reported that China’s manufacturing purchasing managers’ index rose to 50.7 in May from 49.4 in April. It also lost 49.9, managed by analysts Refinitives had expected a number increase above the 50-point level.
Wang Zhe, a senior economist at Coxin Insight Group, wrote, “The domestic economy recovered from the epidemic and production recovered faster than demand.” Exports are scarce as the virus continues to plague.
The Chinese government also over the weekend Reported that its official manufacturing PMI rose in May. According to Jeffrey Haley, senior market analyst at Wonder Asia Pacific, the official non-manufacturing PMI survey, which measures the services sector, also indicated an expansion – another suggestion of a recovery in domestic economic activity.
Although South Korea and Taiwan saw production shrink in May. According to Alex Holmes, Asia economist at Capital Economics, after the decline in output in the Philippines, Vietnam, Malaysia and Thailand, the PMIs of Southeast Asian countries have shown signs of contraction rather than growth, according to Capital Economics Asia Economics.
“The bigger picture remains the same – the region’s manufacturing sector is in deep recession,” Holmes wrote in a note Monday. “Output is likely to remain below normal for several months to come as domestic and global demand is very depressed.”