Latest data out of China shows factory activity shrinking for the fifth consecutive month in March, heightening concerns that this could be the turning point for Australia's resource plays and currency as chances increase of a protracted slowdown in the world’s largest consumer of commodities.
One analyst told CNBC on Thursday that he was thinking of reworking his Australian portfolio keeping in mind a slowing China.
“The numbers are showing us that there is slowing down, we will therefore construct portfolios with less expectations that growth from China will drive,” Jeremy Hook, Investment Director of TMS Capital, an advisory firm based in Sydney, told CNBC. “Therefore some of the domestic (Australian) stories, some of the beaten-up cyclicals such as brick works and the building sector, which have been terrible here. That might be the better place to invest where nothing is expected rather than the resource sector where a lot is expected and we could end the year being a bit disappointed,” Hook said.Page 1 of 3 | Next Page