China factory activity shrinks again in February

SHANGHAI: Hours after China's central bank cut interest rates to battle slowing growth and rising deflationary risk, an official survey showed that activity in China's factory sector contracted for a second straight month in February.

The official Purchasing Managers' Index (PMI) inched up to 49.9 in February from January's 49.8, a whisker below the 50-point level separating growth from contraction on a monthly basis, but nevertheless above more pessimistic analyst forecasts for a 49.7 reading.