Japan's Nikkei 225 surges 2%; data shows China's factory activity in October shrinking for second month

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Japan's Nikkei 225 surges 2%; data shows China's factory activity in October shrinking for second month
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Japan stocks set to rise; data shows China's factory activity in October shrinking

China's factory activity

China's official manufacturing Purchasing Managers' Index for October came in at 49.2 over the weekend, below the 50 level separating expansion from contraction. It represented the second straight month of shrinking manufacturing activity in the country, following September's official manufacturing PMI reading of 49.6.

PMI reading below 50 represent contraction while those above that level signify expansion. PMI readings are sequential and represent month-on-month expansion or contraction. A private survey on Chinese manufacturing activity in October is set to be released on Monday, with the Caixin/Markit manufacturing PMI expected at 9:45 a.m. HK/SIN.

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