Japan industry looking better

Japan is an important part of an expected Asian pickup in manufacturing and the news on this front is positive. Following the last week's stronger-than-expected October real export reading, this week's incoming data indicated that November manufacturing surveys were upbeat. 

The flash manufacturing PMI posted a rise in the output index to 53.9, its highest level since the VAT hike in April last year. In addition, the Shoko Chukin business survey showed that small firms' sentiment rose further in November, led by manufacturing. 

"We expect IP to increase 1.8%m/m, sa in October (due Monday)", says J.P. Morgan Research.