China exports grow "at near-record rate" in January

Feb. 1 (Bloomberg) -- China, the world’s third-biggest economy, sustained its manufacturing expansion in January as export orders jumped and inflation pressures grew, two surveys showed today.

A purchasing managers’ index released by HSBC Holdings Plc and Markit Economics rose to a record. A second survey, by the Federation of Logistics and Purchasing, recorded the second- fastest growth since 2008. India reported an acceleration of manufacturing today and Australia posted an expansion.

Asian stocks tumbled as China’s reports spurred concern that the government will have to escalate efforts to rein in the credit growth that has fueled the nation’s infrastructure spending surge. Policy makers may raise interest rates by the end of June, after already increasing banks’ reserve requirements and targeting reduced credit growth, according to the median estimate in a Bloomberg News survey of economists.

“These numbers should reinforce the case for policy tightening in the months ahead, including a move towards a stronger yuan,” said Brian Jackson, a Hong Kong-based emerging markets strategist at Royal Bank of Canada.

The benchmark Shanghai Composite Index of stocks fell 1.5 percent as of 2:47 p.m. local time, extending this year’s slide to 10.2 percent. Twelve-month non-deliverable yuan forwards indicated that traders expect the Chinese currency to appreciate 2.8 percent in the next year against the dollar. The yuan has been pegged to the U.S. currency for the past 18 months.

Export Gains

The HSBC index rose to a seasonally adjusted 57.4 from 56.1 in December and the survey showed the biggest gains in input and output prices since July 2008. Export sales rose at a “near- record rate,” a statement on Markit’s Web site said, without giving numbers.

¨http://www.bloomberg.com/apps/news?pid=20601087&sid=aq0lZIHfpsYM&pos=4

 

Ha, ha, hee, hee, ho, ho! Down another 10%!? :eek:

 

In was a buyer today in Asia...10 % is a "healthy" correction.