ForexLive Asia-Pacific FX news wrap: China’s 2nd Manufacturing PMI beats, into expansion | Forexlive

The
key data focus for the session here in Asia-Pacific today was the
Caixin / S&P Global Manufacturing PMI for May 2023. This was
expected to remain in contraction, especially following yesterday’s
very disappointing official PMIs, those for China’s National Bureau
of Statistics (NBS). ICYMI:

Today’s
PMI burst into expansion, handily beating expectations and much
improved from April. The better result saw the Australian dollar
improve on the session, as did the yuan and Chinese equity markets.

In
other data Australian Q1 capex hit a 7-year high in Q1, the outlook
for further business expenditure is solid. It should be noted that
higher costs of equipment and building contributed to the
improvements.

In
Japan, the manufacturing PMI moved into expansion for the first time
in 7 months. Capex data for Q1 showed gains for the eight consecutive
quarter, plant and equipment investment jumped at the fastest rate
since 2015.

The
news of note, although expected, was the approval of the US bipartisan
bill to suspend the government’s $31.4 trillion debt ceiling. The US
House of Representatives voted with a large majority to pass the
bill. It now heads to the Senate for its vote and is expected to pass
there also. The news of the passing saw US equity index futures pop
higher on Globex. This was quickly reversed though and, as I update,
ES and NQ are not too far from their low.

Asian
equity markets: