Shanghai | China's economy staged a sharp rebound in the second quarter as its manufacturing output returned to pre-pandemic levels thanks to a backlog in export orders, putting it on track to be the first major world economy to record positive growth this year.

However, consumption remained weak after a coronavirus outbreak in Beijing last month and severe flooding in the country's south dented consumer sentiment. The economic data was overshadowed by concerns about escalating Sino-US tensions which pushed sharemarkets in China and the region lower on Thursday.