China's economy is showing stronger signs of recovery after the easing of Covid-19 restrictions, with manufacturing activity recording its biggest increase in 11 years.
Looking at data released in the Asian session, the manufacturing PMI index rose to 52.6 in February, which is the highest reading since April 2021.
While the non-manufacturing PMI index in both the service and construction sectors jumped to 56.3, the highest since March 2021.
Separately, the private PMI survey by Caixin which focuses on smaller companies also showed an increase in February, rising to 51.6 from 49.2 in January.
This strengthening was supported by an increase in both supply and demand as production gradually returned to normal.
Asian markets welcomed the strong PMi report, with the Aussie and New Zealand dollars erasing losses, while the yuan edged higher.
China's economy has been badly affected last year due to the zero-covid-19 policy it implemented to contain the spread.
However, due to its economy being far behind compared to other developed countries, the government had to set aside the policy and restrictions were lifted again in December 2022.
