China's Caixin manufacturing PMI rises in May

China's Caixin general manufacturing purchasing managers index increased to 49.1 in May, up from April's 26-month low of 46.0 to beating market forecasts of 48.0.

However, May's reading also marked the third consecutive monthly decline in factory activity, due to stringent Covid-19 control measures, as both output and new orders fell, albeit at a softer rate, amid further declines in both export orders and employment.

Elsewhere, further increases were seen in backlogs on the back of ongoing disruptions due to coronavirus outbreaks.

Chinese firms also continued to cut purchases, with companies looking to streamline stocks while delivery times lengthened due to travel curbs.

In terms of prices, input cost inflation moderated for the second month in a row, while selling prices fell for the first time in five months thanks to efforts to stimulate client demand.

Sentiment also weakened to a five-month low due to concerns regarding the ongoing conflict between Russia and Ukraine.

Reporting by Iain Gilbert at Sharecast.com