China manufacturing growth: China's manufacturing sector showed signs of recovery in March, with the official Purchasing Managers' Index (PMI) rising to 50.8 from 49.1 in February, beating expectations. This expansion, the first in six months, suggests modest but positive momentum. Analysts note improved domestic supply and demand, rising consumer and business confidence, and an increasing willingness to consume and invest.

New export orders, after an 11-month slump, entered positive territory, indicating a potential revival in global demand. However, employment continued to decline, albeit at a slower pace. Despite challenges in the property sector and weakening global demand, recent economic indicators suggest a gradual recovery. Analysts have revised growth forecasts upward for the year.

Premier Li Qiang announced a 2024 economic growth target of around 5 per cent, but achieving this may require further stimulus measures. Policymakers aim to promote large-scale equipment upgrades and consumer goods sales, which could stimulate market demand significantly. However, analysts caution that China must transition towards greater reliance on household consumption to avoid stagnation in the future.

(with Reuters inputs)