Global manufacturing activity rises in January

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In China, the government's official purchasing managers Aindex (PMI) inched up to 50.5 in January from 50.3 in December, as new orders rose to a three-month high.

While China's growth provides the global economy with a needed boost, new export orders fell sharply in the Asian giant, underscoring the troubles in Europe that keep Asia's export-reliant countries vulnerable.

"As external demand is now fading clearly, Chinese exporters are facing increasing difficulties," China's finance minister, Xie Xuren, said in remarks on Wednesday.

In Europe, Germany's gains propelled a rise in the Eurozone Manufacturing Purchasing Managers' Index, compiled by Markit, to 48.8 last month from 46.9 in December. But the index marked its sixth month in contraction territory, below the 50 mark.

In the United States, the manufacturing sector grew at its fastest pace in seven months in January as new orders improved.

The Institute for Supply Management (ISM) said its index of national factory activity rose to a reading of 54.1 from a revised 53.1 the month before, falling shy of expectations for 54.5.

Data from Britain was also upbeat, as the manufacturing sector unexpectedly grew in January. The PMI rose to 52.1 from 49.6, easily beating expectations for 50.0.

The euro and global equity markets surged as the U.S., Chinese and German manufacturing data drove investors' optimism on the path of the global economy.

ASIA WAVERING BUT STILL RELATIVELY STRONG