Markets rise despite weak Chinese manufacturing news

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LONDON (AP) – Global stocks mostly rose Monday as long-awaited signs of improvement in Japan s economy helped investors shrug off a weakening in China s manufacturing sector.

 

The Bank of Japan s closely-watched quarterly “tankan” survey for June showed that the index for major manufacturers rose to positive 4 points from negative 8 in March. It was the first positive figure since September 2011. A positive reading means more companies are optimistic than pessimistic.

 

The report, along with another survey showing consumer prices stopped falling for the first time in seven months, suggests companies are reacting positively to the weaker yen and Prime Minister Shinzo Abe s policies to revive the economy.

 

Market gains were tempered, however, by a report showing China s manufacturing decelerated in June for a second month. The survey by HSBC Corp. and a Chinese industry group declined to 48.2 points from May s 49.2 on a 100-point scale on which numbers below 50 indicate a contraction. The drop reflects in part a tightening in lending conditions as Beijing sought to stabilize the credit market.

 

Tokyo s Nikkei 225 rose 1.3 percent to close at 13,852.50 while China s benchmark Shanghai Composite Index gained a more moderate 0.8 percent to 1,998.24.

 

In Europe, stock indexes rose after a mixed set of economic indicators for the region. Unemployment across the 17-country eurozone rose to another record high, at 12.1 percent in May. The number shows the massive amount of work governments have to address the social impact that their debt reduction policies have had.

 

A separate report, however, showed an improvement in manufacturing activity in Britain, France and Italy and stabilization in Spain.181173_43686793

2013-07-02

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