Chinese factory activity has contracted.

For the fifth straight month in March, with flash manufacturing PMI slipping to 48.1 from 48.5 in February and missing consensus of 48.7. "Weakness is broadly based with domestic demand softening further," says HSBC. "We expect Beijing to launch a series of policy measures to stabilize growth." Hopes of such stimulus helped push the Shanghai Composite up 0.9%, while the Hang Seng rose 1.9%.