China’s manufacturing contracts for 3rd straight month in sign of economic

The official non-manufacturing PMI, also released on Sunday, slipped to 53.1 from 53.4 in September, the lowest reading since December 2008.

The private Caixin China manufacturing PMI on small and medium-sized firms is out today, with recovery forecasted from 47.2 in September to 47.6, or an eight-month-long contraction.

The reading is closer to the 50-point level that separates growth from contraction than it was in September, indicating that the industry shrank again in October, but less so than a month earlier. “To all intents and purposes this is the best result that the markets could expect”, said Nicholas Spiro, managing director of Spiro Sovereign Strategy. It has unnerved investors around the world, hurt countries that had prospered by supplying China with raw materials and weighed on global growth. Australia’s S&P/ASX 200 Index fell 1.1%, led by banks and telephone companies, while New Zealand’s S&P/NZX 50 Index was little changed.

As the first major indicators of business conditions in China released each month, the purchasing managers’ indices (PMIs) reinforced the view that the economy remains in the midst of a gradual slowdown which will require Beijing to roll out more support.

In opening deals, the FTSE 100 Index was down 37.0 points, or 0.8 per cent at 6,324.1. The latest cut in interest rates and banks’ reserve requirement came on Oct 23.

Asian stocks dipped in early trade Monday, while the dollar retreated against most regional currencies as a weak reading in a Chinese manufacturing index stirred worries about the world´s number two economy. China’s survey-based unemployment rate picked up slightly to around 5.2 percent in September, while a ratio of job supply and demand rose in the third quarter. That would be the 12th of the last 14 the region has missed estimates, according to Mr. Sherwood. The index has been rebounding since late August.

To shore up growth, Beijing has rolled out a flurry of stimulus measures since past year, including quickening spending on infrastructure, easing curbs on the ailing property sector and cutting interest rates six times since November 2014.

WTI Crude oil climbed 1.14% to $46.59 a barrel, while Brent was up 1.53% at $49.56 a barrel.

Gold prices were down 0.1% at $1,140.60 a troy ounce.

Grace Zhu contributed to this article.