Chinese PMI expansion accelerates.

China's HSBC PMI grew at the fastest speed in 19 months in December, increasing to a final reading of 51.5 from 50.5 in November and coming in higher than the preliminary figure of 50.9. "Momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilize," says HSBC's Qu Hongbin. The PMI data helped Chinese shares close sharply higher on the day and record their first annual gain in three years.