China manufacturing grows fastest since ’08

BEIJING: China's manufacturing expanded at the fastest pace in 16 months in August, driven by record lending in the first half of the year, two surveys showed. The Purchasing Managers��� Index rose to a seasonally-adjusted 54 from 53.3 in July, the Federation of Logistics and Purchasing said in an e-mailed statement in Beijing on Tuesday . A PMI released by HSBC Holdings also climbed.

Gains in output, orders and jobs added to evidence that Premier Wen Jiabao can meet his 8% growth target for the year as a stimulus package counters falling exports. The Shanghai Composite Index plunged into a bear market on Tuesday on concern that the world���s third-biggest economy will slump as banks rein in credit growth to avert asset bubbles and bad loans.

Shanghai���s stock index closed 0.6% higher after tumbling 6.7% on Monday. Asian stocks rose. New loans plunged to 355.9 billion yuan ($52 billion) in July, less than a quarter of June���s level, and may slump to 200 billion yuan in August, the Beijing-based business magazine Caijing reported on Monday without citing anyone.

Maintaining momentum
The government-backed PMI ���shows that China���s economic rebound will maintain momentum��� , Zhang Liqun, a researcher at the State Council Development and Research Center, said in Tuesday���s statement. Zhang cautioned that there were ���uncertainties��� in the economy and a mix of ���positive and negative factors��� .

Economic growth accelerated to 7.9% in the second quarter from a year earlier on the nation���s $585 billion stimulus package and more than $1 trillion of new loans in the first half.

European industry, jobs data lift gloom

FRANKFURT/LONDON: Europe���s manufacturing recession eased more than initially estimated last month and German unemployment unexpectedly fell, indicating that the region���s economy continues to move towards recovery.

An index of euro-area manufacturing rose to 48.2 from 46.3 in July, Markit Economics said on Tuesday, the highest in 14 months and above an August 21 estimate.