China, Japan economies show signs of recovery in June

(MENAFN) Growth in China's services sector picked up in June, while big Japanese companies planned to ramp up spending at the fastest pace in a decade, Gulf Daily News reported.

The figures offer hopes that prospects are improving for Asia's largest economies despite sluggish factory growth, fuelling expectations that the unstable global economy may start leveling out in the second half.

However, the outlook remains murky, with fears that Greece's debt crisis could splinter the euro zone and worries about whether China can avoid a stock market crash keeping investors on edge.

"When you have two of the biggest economies in the world showing positive readings it is encouraging. They also come on the back of some good readings out of the US," chief economist at CommSec said.