China services PMI rebounds to 17-month high
Optimism about China's economy appeared to rebound, according to two data readings released on Wednesday morning.
China's official non-manufacturing purchasing managers index (PMI) rose to 54.4 in August from 54.2 in July, while HSBC's service PMI rose to a 17-month high of 54.1 in August from 50.0 the month before.
In combination with strong data from the US, sentiment among Asian stocks was strong, with most regional indices trading higher.
"Given that the sector narrowly avoided contraction the month before, it's no surprise that this provided such a boost," said Alpari analyst Craig Erlam. "Especially when it comes from a sector that is going to be of extreme importance for the Chinese economy in the years to come as it transitions from an export led economy to a consumer driven one."
Risk appetite was also supported by Japan prime minister Shinzo Abe's appointment of pro-China policy makers among a cabinet reshuffle to help restore economic momentum.
Japanese services PMI moved up slightly from 50.4 to 50.8.
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