China's industrial production increased by more than expected in August the latest sign that the world's second-largest economy may be on the mend. According to data released on Tuesday factory output climbed 10.4% from a year earlier. Retail sales and fixed asset investment also rose during the month.
China has been trying to boost its economy after its growth rate slowed for two quarters in a row. The numbers come just days after China reported a strong growth in exports during August.
The export and manufacturing sectors have been key drivers of China's economic growth in recent years. But a slowdown in demand from key markets such as the US and Europe had hurt their growth recently.
However, conditions in those economies, especially the US, have been improving - providing a boost to these sectors.
At the same time, Chinese authorities have taken steps to help boost domestic demand to try and rebalance the economy.
Analysts said these measures, which include the suspension of value-added tax and turnover tax for small businesses, had helped boost consumption at home and sustain a high growth rate.
The Chinese data together with the easing of the Syria crisis and strengthening of the US economy helped boost world markets on Tuesday.