Beijing: Asian markets were hit hard by data that showed China's manufacturing index dropped to the lowest level since February 2009, bolstering the case for fiscal or monetary loosening to support the expansion of the world's second-biggest economy.
The Purchasing Managers' Index fell to 50.4 in October from 51.2 in September, lower than any of 16 economist estimates in a Bloomberg News survey that had a median forecast of 51.8. A reading above 50 indicates expansion.
"China's economy is poised for a soft landing in the fourth quarter rather than a hard landing," said Liu Li-Gang, head of Greater China Economics at Australia & New Zealand Banking Group, said.
The PMI reading "is a reflection of slowing momentum in the economy".
