China Loses Momentum in Manufacturing
Chinese manufacturing slowed in August more than analysts predicted. The Purchasing Managers’ Index rate dropped 0.6 to 51.1 last month, which, with slowing property investment, may pressure Beijing into action. New stimulus measures are expected in the coming weeks as China seeks to meet its expansion target of 7.5 percent for the year. That news prompted Asian stocks to rise in early trading today, but China is also facing the prospect of its first-ever default in its expanding shadow banking sector.