China’s Service Sector Activity Expands at Fastest Pace Since December
In a positive sign for the Chinese economy, the service sector activity in China has expanded at its fastest pace since December, according to surveys from Caixin. The services purchasing managers index in China rose to 52.7 in March, up from 52.5 in February, marking the 15th straight month of expansion for the sector.
Caixin’s report highlighted that the growth in the service sector was driven by new business rising, with improvements in underlying demand conditions and business development efforts boosting the rise in new work. This growth is a promising indicator for the Chinese economy as it continues to recover from the impact of the pandemic.
Meanwhile, in other news, Taiwan Semiconductor Manufacturing Co (TSMC) had to evacuate production lines after a major earthquake hit Taiwan early Wednesday. Despite the evacuation, a company spokesperson reassured that safety systems were operating normally. The incident caused shares of TSMC to fall 1.5% in early trading, while the broader Taiwan Weighted Index dropped 0.9%.
Additionally, Fast Retailing, the owner of Uniqlo, saw its shares plunge to a two-week low, falling over 4% after disclosing that same-store sales in its Uniqlo stores in Japan declined in March. The company attributed the sales contraction to persistently cold weather throughout the month, which affected the sales of spring items.
In another development, Country Garden reported a significant plunge of over 80% in sales for March, indicating challenges in the real estate sector. These fluctuations in various sectors highlight the ongoing economic dynamics in the region.
Overall, these updates reflect the evolving landscape of the Asian markets and provide insights into the current trends and challenges facing businesses in the region. Stay tuned for more updates on the latest developments in the global economy.
