Weak readings from China’s official purchasing managers’ index have revived expectations of additional economic support from the People’s Bank of China (PBOC).
Bloomberg’s Minmin Low said the latest manufacturing-gauge developments are fueling bets on another PBOC interest-rate cut. The renewed speculation follows signs of weakness reflected in the official PMI data, though the available information does not specify the scale or timing of any potential policy move.
Investors are now assessing whether the softer manufacturing figures will increase pressure on Chinese authorities to provide further stimulus through monetary policy.
Sources: Bloomberg Markets.