Surveys Show Global Manufacturing on The Mend

London, England, June 1, 2009--World stock markets rose strongly Monday after closely-watched manufacturing surveys reinforced hopes that the global economy may start to recover by the second half of the year.

The bright start to the week was sparked by surveys in Europe and Asia showing that the manufacturing sector was on the mend if not quite in full recovery mode. A similar survey later from the U.S. is also expected to echo findings elsewhere.

In China, brokerage CLSA Asia-Pacific Markets said its monthly purchasing managers index -- a broad gauge of activity -- rose to 51.2 in May from April's 50.1. Anything above 50 indicates an expansion. The state-sanctioned China Federation of Logistics and Purchasing said its own PMI eased slightly to 53.1 from April's 53.5 but still showed activity expanding.

Meanwhile, data provider Markit found that its manufacturing purchasing managers' index for 16 countries that use the euro was revised up to a seven month high of 40.7 in May from the previous estimate of 40.5, while the Chartered Institute of Purchasing and Supply said its purchasing managers index for Britain rose for the third month running to 45.4 in May from 43.1 in April.

Economic news could well be the main driver this week, culminating in Friday's closely-watched U.S. non-farm payrolls report for May where investors will be looking to see if the recent better than expected U.S. economic data is being translated into more modest job losses.