Gloomy China, Japan Data Add To Pressure For Stimulus

The loss of manufacturing jobs is a setback for Chinese leaders who are trying to steer their economy to more sustainable growth based on domestic consumption while avoiding a politically dangerous spike in unemployment. The surveys by HSBC Corp. and an industry group, the China Federation of Logistics and Purchasing, found manufacturing was weak in February. The Bank of Japan's quarterly "tankan" survey, the country's leading measure of corporate sentiment, highlights a dilemma for leaders who are trying to break out of two decades of stagnation. The central bank governor, Haruhiko Kuroda, says the economy is on course for a moderate recovery and inflation will pick up again after it cools due to lower oil prices. The central bank has been pumping trillions of yen (tens of billions of dollars) into the economy through asset purchases aimed at keeping interest rates low and stimulating inflation. Manufacturing "continues to struggle to gain growth traction," said economist Annabel Fiddes of Markit Economics, which conducted the HSBC survey, in a statement.

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