China's manufacturing activity fell to a one-year low in April, a private survey showed on Thursday.
The flash HSBC Purchasing Managers' Index (PMI) came in at 49.2, compared with a Agency forecast for a 49.6 print, and following the final March reading of 49.6. A figure below 50 signals contraction.
China markets pulled back modestly following the data; Shanghai Composite fell deeper into negative terrain, down 0.3 percent, while the Hang Seng index trimmed gains to 0.6 percent from 0.8 percent.
The Australian dollar fell as low as USD 0.7718, from USD 0.7733 before the data.
Over the weekend, the People's Republic of China slashed the reserve requirement ratio (RRR) of major banks. The 100 basis point-cut to 18.5 percent is the biggest since 2008, during the height of the global financial crisis.
The move was the latest in a series of aggressive measures by policymakers to stem further slowdown in the world's second largest economy.
China grew 7 percent in the first quarter on an annual basis, growth figures revealed last week, the slowest pace in six years.
The flash redaing is typically based on approximately 85–90 percent of total PMI survey responses each month. April's final PMI data will be released on May 4.
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