China's Flash PMI recovers to 51.7 in March

This has boosted confidence of continued growth.

BBVA reports that the HSBC Flash PMI estimate for March rebounded to 51.7 (consensus: 50.8) after last month’s drop to 50.4, a jump that was driven by improved output and new orders. The rebound appears to have partially eased market concerns about a loss of growth momentum after the release of mixed activity indicators in January/February, according to the research firm.

But there is a danger in drawing too much optimism from this single improved economic indicator.

"Caution is in order in interpreting the flash estimate, given lingering seasonal effects from the timing of Chinese New Year and the usual volatility in monthly data. In the meantime, we believe that recent indicators are consistent with our 8.0% growth projection for 2013. The focus now turns to the official NBS PMI on April 1," said BBVA.