China's 'flash' purchasing manager index (PMI) for manufacturing rose 2.4 points in August to a four-month high of 50.1, according to Markit/HSBC. A final reading above 50 (reported September 1) would add to our optimism from the flash report. China is approximately 20% of the benchmark emerging market stock index and contributes substantially to global economic growth, so signs of stability are welcome for global markets. Since June, the MSCI China Index has significantly outperformed other emerging markets in part because much of the weakness has been focused on emerging market currencies in those countries with current account deficits. China has ample foreign exchange reserves and a managed currency

David Fuller's view The Weekly View is interesting on China and a must-see graphic for the US stock market is also included.