Asia will spend the day digesting the Federal Open Market Committee (FOMC) rate hike and guidance.
The local data calendar will take a distant back seat. However, the PMI from China will be eyed. The official manufacturing PMI published last weekend was ugly:
China has two primary Purchasing Managers' Index (PMI) surveys - the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by the media company Caixin and research firm Markit / S&P Global.
- The official PMI survey covers large and state-owned companies, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered to be a more reliable indicator of the performance of China's private sector.
- Another difference between the two surveys is their methodology. The Caixin PMI survey uses a broader sample of companies than the official survey.
- Despite these differences, the two surveys often provide similar readings on China's manufacturing sector. It'll be useful comparing the results of today's with that from the weekend.
