China Manufacturing Grows;McIlroy Thwarts Scott

Both government and private purchasing manager surveys show Chinese manufacturers did somewhat better than expected in November.The official PMI reached 51.4,versus a median estimate of 51.1.A number above 50 signifies growth in the sector.
The private HSBC/Markit Economics PMI came in at 50.8,which is more than all thirteen analysts surveyed predicted.
This positive result was tempered by the fact that large companies drove the uptick;small ones didn't do so well.The HSBC survey also revealed a contraction in employment and slower restocking.A Bloomberg News survey of economists in November showed that most of them felt China's growth would slow to 7.5% in 2014,which meets the governments's goal,but would be down from 7.6% this year.*
China announced that it would allow the restart of initial public offerings.This drove the Shanghai Composite Index down,for fear the that the IPOs would siphon funds from the rest of the market.Asian stocks were mixed overall in early Monday trading,with the Nikkei down 0.4%,while the Hang Seng rose 0.44%.*
Northern Ireland's Rory McIlroy prevented Australian Adam Scott from sweeping all three Australian majors on Sunday as he took the Emirates Australian Open with his eighteen under par 66.It was the former World Number One's only win of the 2013 season;he was ranked sixth this year behind leader Tiger Woods.Scott had won the Australian PGA Championship and the Australian Masters the past few weeks;but a lackluster fourth round opened the door to McIlroy,whose game has been sharpening recently,after a mediocre season in which he had scored six top ten finishes,but no victories.*
I wanted to get a win by the end of the season,McIlroy said,but more satisfying was to take one the best golfers in the world down the stretch and come out on top.I've been building confidence for a few weeks now.I worked hard.I put the hours of practice in,and I feel that I've really found something.*
Scott had become the first Australian to ever win the victor's green jacket at the US Masters in April,making him a national hero.*

Asia This Day:Manufacturing Declines Across Region

Manufacturing is in decline across the Asia-Pacific region,according to the latest data.In Japan,the Tankan index of large manufacturer sentiment fell to -3 from -1,the Bank of Japan reported,and there was a second straight decline of industrial production in August.
HSBC's purchasing mangers' index showed 11 straight months of manufacturing decline in China,while the official Chinese PMI charted the second straight monthly drop on diminished internal and external demand.In South Korea,exports fell 1.8% in September.
Australia is also slowing down,with its manufacturing index slipping 1.2 to 44.1,meaning contraction,in a seventh straight month of decline.China's economic growth is at a 22-year low.The European debt crisis and fears about the US economy are crimping Asian business activity.
The MSCI Asia-Pacific index fell 0.28% in early Monday trading.Markets in Hong Kong,Shanghai and Seoul were closed for holidays.
The Chinese Communist Party will hold its 18th Party Congress on November 8.At that time,new leaders Xi Jingping and Li Keqiang will take office as President and Premier,respectively.

Buyers Report Free Fall

U.S. Manufacturers reported a sharp drop in activity for December,according to the Institute for Supply Management's Purchasing Managers Index.The index registered 32.4-down from November's reading of 36.2.A Thomson Reuters survey of economists had predicted a reading of 35.5,and a number below 50 indicates the sector is contracting.Also in the ISM survey,it was noted that new orders fell to an historic low,eclipsing the previous record from 1948,while prices paid slumped below the former record,set in 1949.The December manufacturing result is the lowest since June 1980.At that point,the economy was almost through a recession that lasted six months.Over the past 28 years,the ISM manufacturing index has seldom dipped below 45.The Institute for Supply Management,a buyers' trade group based in Tempe,Arizona,surveys hundreds of firms for its monthly reports,which are considered major events on the economic calendar.

Purchasing Managers Ease Up

According to two surveys taken by the Institute for Supply Management,the U.S. economy is slowing.The ISM,a purchasing managers trade group,released its manufacturing and non-manufacturing indexes last week.The manufacturing index,a survey of factories and utilities,dropped from 56 in June to 53.8 in July.In a recession,the index could drop below 50.The non-manufacturing index showed a decline from 60.7 in June to 55.8 in July.Since the service sector represents 80% of the U.S. economy,this number is even more significant.The drop in these indexes parallels the slowing in job creation reflected in last Friday's employment report.The U.S. economy had been widely expected to cool off in the second half of 2007.This points investors to multinational firms that are not so reliant on U.S. profits,such as United Technologies(UTX) and 3M(MMM). Investors should be cautious today.The Federal Reserve issues its interest rate decision and remarks at 2:15 PM EST.If the market doesn't like them,it could take a tumble.