China’s service industries expanded at a faster pace in September. The Purchasing Managers’ Index rose to 54.3 from 52 in August, HSBC Holdings Plc and Markit Economics said today. A reading above 50 indicates expansion.
“This suggests that Chinese growth will rebound only modestly towards year-end,” said Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB. “Nevertheless, today’s data is a positive as it puts a floor under the overall sentiment measure.”
In Hong Kong’s offshore market, the yuan gained 0.05 percent to 6.2945 per dollar. Twelve-month non-deliverable forwards strengthened 0.04 percent to 6.3930, a 1.7 percent discount to the spot rate in Shanghai, according to data compiled by Bloomberg. One-month implied volatility, a measure of exchange-rate swings used to price options, was steady at 1.2 percent.
Manufacturing in China shrank in August and September, contracting in consecutive months for the first time since 2009, according to a government-backed Purchasing Managers’ Index published Oct. 1. The gauge was 49.8 in September, compared with 49.2 in the previous month.