Cautious optimism as factory activity hits multi-month high

Chinese factory activity reached a several-month high in June, reinforcing signs that “mini-stimulus” measures have succeeded in steadying the economy, Reuters reported, citing official and private surveys. The official Purchasing Managers’ Index, published by the National Bureau of Statistics, hit a six-month high of 51 in June, while the HSBC PMI rose to 50.7 from May’s 49.4, exceeding the 50-point level that separates growth in activity from contraction. Despite signs that the worst is over, Beijing may have to announce more stimulus measures in coming months to offset the increasing drag from the cooling property sector, analysts say.