China's purchasing managers index (PMI) posted a strong showing in July, offering hope that the world's second-largest economy is well on its way to recovery. The PMI boosted the share prices and commodities in the region. The modest growth shows a stabilizing economy but Societe Generale's economist in Hong Kong, Wei Yao, said it's still too early to think that the worst is over for China. "I think the official report does offer a slim hope that the economy is stabilizing at least, but it is still a bit early to conclude that things have turned around decisively," he said.
In other parts of Asia, however, the PMI reports weren't as optimistic. Based on their July reports, there was a drop in the factory activity in India, South Korea, and Taiwan as output and new orders decreased. Indonesia held steady. India, on the other hand, still showed strong demand overseas albeit this was not as robust as last month's. Asian PMIs measured various conditions in the region's manufacturing sector.
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