China's manufacturing activity rose to an 18-month high in July, a private survey showed Thursday, as the government's stimulus measures worked their magic, consolidating a recovery in the world's second biggest economy.
The HSBC flash Purchasing Managers' Index (PMI) came in at 52.0, better than a Reuters poll of 51.0 and following the 50.7 final reading in June, marking a second straight month of expansion.
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This is the highest reading since January 2013 and above the 50-point level that separates growth in activity from contraction for the second consecutive month.
The Australian dollar rose at two-week high against the greenback on the news, while Shanghai stocks climbed to a one-month high and the Hang Seng Index leapt to seven-month highs.