China's factory activity shrank for a second straight month in November, with the purchasing managers' index hitting 48.0 points, down from October's 49.2 and below market forecasts of 49.0, according to data from the National Bureau of Statistics.
Overall new orders fell to 46.4 from 48.1, while new export orders dropped to 46.7 from 47.6, evidencing fading demand in both domestic and overseas markets.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, commented: ‘’The toll of rising Covid cases and rolling lockdowns on the Chinese economy has been pulled into sharp focus by PMI data showing manufacturing and services activities fell at the fastest pace since April.”
“It’s clear that a change to the zero-Covid policy can’t come soon enough to propel a recovery, and investors are clinging onto hopes that renewed attention of a vaccination programme for older citizens will hasten a relaxation of the rules.”
“But given it’s so unclear exactly when authorities will change tack, stocks in Asia remained volatile.”