Asian markets warm to Chinese central bank comments and strong Japanese manufacturing

 
Peter Spence
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TURBULENT Asian markets calmed overnight, as fears of a Chinese credit crunch showed some signs of waning. The governor of China's central bank - the People's Bank of China (PBOC) - said that policy settings were appropriate and that the PBOC would balance needs to reform the economy and keep growth on an even keel.

In Japan, fresh data showed the jobless rate flat at 4.1 per cent in May, while strong purchasing managers' index (PMI) figures for manufacturing saw the Nikkei up. Manufacturing PMI rose from 51.5 to 52.3, implying that the sector is expanding at its fastest pace since February 2011.

ETX Capital's Ishaq Siddiqi said that Abenomics looks to be paying off, "judging by a host of data released overnight which kicked up the Nikkei Index and weakened the yen".