AsiaPac StocksTest 3-MonthHighsAsChinaServicesPMIDroopsTo 11-MonthLow
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China’s Manufacturing PMI printed in line with its Flash estimate last night and the ServicesPMIjustprinted at a disappointing 11-monthlowasthe 2 segmentsoftheeconomydivergebytheirmostonrecord. The ‘good’ news that Obama backed away from the big red button for 5 minutes (and improving European PMIs) is spurring some more catch up in Asia tonight and while critical nations like India (whose PMI was dismal) and Indonesia are still languishing, thebouncebackinthelastfewdayshaspushedMSCI’sAsiaPac (ex-Japan) indexupto 3-monthhighs… Well, it’s a hot-money current-account-deficit vicious cycle dip to be bought, of course. Treasuries re-opened in line with futures expectations (around 5bps higherinyield) and S&P futures are leaking very gently off this morning’s exuberant heights (but remain up over 1% from Friday’s close). WTI is hovering around $107 (down from Friday) but Brentis at $114.50 (slightlyhigherthanFriday’sclose). Silver is holding its strong gains and gold is flat.

China’s Services and Manufacturing segments are diverging significantly…

And global stocks are bouncing once again…

Though notably Japan has been underperforming until the last 2 days 600 point liftathon stop-hunt…

and while India and Indonesia have bounced in the last few days, they remain under signficant pressure…

Charts: Bloomberg

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