CHINESE FORTUNES and GLOBAL PMI

Global growth next year will depend on China’s ability to overcome its downturn, after a disappointing 2012.

World share markets extended a week-long rally on Thursday in response to the data.

Thursday’s Chinese manufacturing PMI was a clear sign the pace of economic growth has revived after seven consecutive quarters of slowdown, after it hit 50.4 in November, a 13-month high and above October’s 49.5.

“This reflects that conditions for smaller firms, especially exporters, are looking up,” said Li Wei, a Shanghai-based economist for Standard Chartered. “The consensus in the market is already for a small, gradual improvement.”

An uptick in key economic activity indicators in October, following encouraging signs in September, cemented the view of many analysts and investors that a rebound in the world’s second largest economy gathered momentum as it entered the fourth quarter, thanks to a raft of pro-growth policies rolled out by the government over recent months.

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