China’s factories are roaring back into life.
Data out Monday (November 2) showed activity in the sector expanding at its fastest pace in almost a decade.
The Caixin/Markit Manufacturing PMI rose to 53.6 in October, beating forecasts and well above the key 50 point line that indicates growth.
That adds to evidence that the country’s vast industrial sector is getting back to pre-crisis levels.
The gains were driven by a surge in domestic demand.
Stimulus-driven infrastructure spending and surprisingly strong exports also helped.
But there are still some warning signs flickering.
Though the index for new orders hit its highest since 2010, the figure for export orders fell.
That as the U.S. and Europe face renewed health battles.
On Monday though investors were happy to focus on the positives.
The PMI numbers helped Asian stocks gain.
Hong Kong’s Hang Seng index closed the day almost 1.5% higher.
The gains then carried over into Europe, where benchmark indexes all started the day in positive territory.