The manufacturing PMI in China came in above 50.  Generally, a reading above 50 signals economic expansion.

    It was the first time the PMI rebounded above 50 percent since July 2008, when the index fell to 48.4 percent.

    A reading of above 50 suggests expansion, while one below 50 indicates contraction.

    The PMI includes a package of indices that measure economic performance. The survey, jointly conducted by the National Bureau of Statistics (NBS), covers purchasing and supply managers of more than 700 manufacturers across China.

    March indices measuring new orders, output, purchasing and new export orders all increased more than 4 percentage points from February, according to the CFLP.

    The output index rose to 56.9 percent in March, up 5.7 percentage points from the previous month. The new order index jumped 4.2 percentage points to 54.6 percent.

    The index measuring new export orders rose 4.1 percentage points from February to 47.5 percent. The figure, although still below the threshold of expansion of 50 percent, showed the depth of decline has been narrowing.

    "The continuous rebound of the PMI not only shows the government economic stimulus package has begun to take obvious effect, but also indicates a stabilizing and warming economy," said NBS head Ma Jiantang.