Analysts at TD Securities note that China's manufacturing PMI moved back into expansion, edging above 50 in November, and offering some hope of a bottom in the sector.

• “The nonmanufacturing and composite PMIs moved further above 50. The breakdown of the manufacturing PMI was somewhat encouraging, but both export and import orders remain in contraction, pointing to ongoing trade weakness. Temporary factors such as pre-Christmas buying and recovery from Chinese New Year holidays, may explain at least some of the bounce.
• China's Caixin manufacturing PMI also beat expectations coming in at 51.8 (TD 51.6, mkt 51.5) in November. As with the official PMI hopes of a Phase 1 trade deal likely gave some support as did targeted easing as banks are increasingly encouraged to lend to smaller companies. Renewed, albeit mild CNY depreciation over recent weeks will also have given some support to exporter sentiment.”