By Tim Seymour
While the U.S. was gorging on turkey, China printed the highest HSBC Flash PMI in 13 months and looks to be ending a seven-quarter contraction in manufacturing that has been overly detailed by market players and media.
China never crash landed, and it is engineering a slower and steadier recovery than people expected. PMI activity in November appears to be in expansion mode if you believe the folks crunching the numbers at HSBC, who by the way are seen as much more conservative and reliable than the government. Readers can use the iShares FTSE China 25 Index Fund (FXI) to gain access broad range of Chinese companies. HSBC's survey also differs from the government's in that is targeting smaller business and not as SOE influenced.
Meanwhile, we will be watching India over the next few days and weeks. Prime Minter Singh is doing his best to engineer real reform and change in a country that is more protective of its social structure to its detriment economically than any other emerging market that I look at.
Watch the legislation to allow foreign retailers into the country to control not only the entities, but also some of the infrastructure and distribution. This change will not come easy, but will be a sign of real change in India after decades of political stalemate.
Taiwan last night was 3%-plus as more local flows are insured from state sponsored insurance and pension companies.