will this blow some steam into market tomorrow

China Manufacturing Expands at Faster Pace, PMI Shows
By Bloomberg News

Nov. 1 (Bloomberg) -- China’s manufacturing expanded at the fastest pace in 18 months and a government researcher said economic growth will accelerate this quarter.

The Purchasing Managers’ Index rose to a seasonally adjusted 55.2 in October from 54.3 in September, the Federation of Logistics and Purchasing said today in an e-mailed statement in Beijing. An index of export orders climbed to 54.5 from 53.3.

Premier Wen Jiabao’s $586 billion stimulus plan and unprecedented growth in new loans are sustaining China’s rebound amid signs that exports may start to recover as the global slump eases. The world’s third-biggest economy may expand at a 9.5 percent annual pace this quarter, Zhang Liqun, of the State Council Development and Research Center, said in the statement.

“China’s recovery has been impressive, but has been heavily reliant on government-directed investment,” said Brian Jackson, Hong Kong-based strategist for emerging markets at Royal Bank of Canada. “External demand will provide an additional source of support for growth in the months ahead,” he said, adding that the government may “start tightening policy from early 2010.”

The latest PMI number was higher than the median estimate of 54.7 in a Bloomberg News survey of 10 economists. A reading above 50 indicates an expansion. Today’s figure compares with a record-low 38.8 in November last year, when recessions in the U.S., Europe and Japan sent export orders plunging.