China factories scent hint of Spring

SYDNEY: Activity in China´s vast factory sector grew for the first time in nine months in March to bring a hint of Spring to the global economy, though a renewed chill in Japanese industry led to a muted response in financial markets.  Surveys due later on Friday are also expected to show a continued expansion in activity in Europe, while the United States should enjoy a return to growth after five months of contraction and another strong jobs report.  Headlining in Asia was a rise in the official version of the Chinese Purchasing Managers´ Index (PMI) to 50.2, beating forecasts and above the 50-point mark that separates growth from contraction.

The private Caixin/Markit PMI found output, total new orders and output prices all returned to growth, while a survey of the service sector surprised with its strength.