Most of the Asian markets barring Nikkei 225 and Straits Times concluded Thursday’s trade in green after reporting an encouraging non-manufacturing activity in China. Shanghai Stock Market remained close on account of National Day and will open for trading on October 8. Seoul Composite was closed on account of National Foundation Day. China’s official non-manufacturing Purchasing Managers’ Index rose to a six-month high of 55.4 in September from 53.9 in August, a China Federation of Logistics and Purchasing statement showed. A reading above 50 indicates on-month expansion in non-manufacturing activity from the previous month and anything below that indicates contraction. The new orders sub-index climbed to 53.4 in September from 50.9, but the business expectations sub-index fell to 60.1 from 62.9. The Asian Development Bank has further down scaled its growth forecast for China this year to 7.6% due to weak domestic demand and at 7.4% next year.
In Hong Kong, the value of total retail sales in August, provisionally estimated at $38.7 billion, rose 8.1% year-on-year. The Census & Statistics Department stated that after netting out the effect of price changes over the same period, the total retail sales volume grew 7.2%. The manufacturing activity in Singapore remained unchanged last month at 50.5, from 50.5 in the preceding month. The Asian Development Bank (ADB) stated that Indonesia’s economic growth will lag in the coming years as monetary tightening policies curb consumer spending in Southeast Asia’s largest economy. The report added that Indonesian economy is expected to grow 5.7% in 2013, less than previous estimates of 6%, and is projected to expand 6% in 2014, down from 6.6% annual growth.
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