Asia-Pacific Markets Trade in Mixed Manner as China's Manufacturing Shrinks for Sixth Month

SINGAPORE — Asia-Pacific markets traded in a mixed manner on Tuesday following China's official manufacturing report of contraction for sixth straight month, although the rate of decline eased against expectations.

The official Manufacturing Purchasing Managers' Index (PMI) for September stood at 49.8, beating forecasts of 49.6, the National Bureau of Statistics said. Although still in contraction, the reading was the strongest since March. Another survey, conducted by private company RatingDog, was more positive and recorded manufacturing activity at 51.2, its best since May and ahead of forecasts of 50.2.

China's CSI 300 index was also flat at the open, showing wary sentiment as investors balanced indications of stabilization against ongoing headwinds in the world's second-largest economy.

In other parts of the region, traders looked ahead to the Reserve Bank of Australia's policy meeting later in the day. The central bank is expected to leave its benchmark cash rate at 3.6%, with sticky inflation leaving little room for easing. "Any change in tone or forward guidance can move AUD crosses, particularly following recent volatility in building approvals," said Shier Lee Lim, APAC FX and macro lead strategist at Convera.

Australia's S&P/ASX 200 was little changed leading up to the decision. Japan's Nikkei 225 decreased 0.1%, with the broader Topix also remaining unchanged. South Korea's Kospi remained unchanged, with the Kosdaq down 0.34%.

In Hong Kong, the Hang Seng index rose 0.45%, while the technology-heavy Hang Seng Tech Index rose 1.01%. Zijin Gold shares jumped over 60% in its first day of trading, capturing the attention of investors.

On Wall Street, U.S. equities rose overnight with the S&P 500 gaining 0.26% to 6,661.21, Nasdaq Composite increasing 0.48% to 22,591.15, and the Dow Jones Industrial Average increasing 68.78 points to 46,316.07. The recovery followed a tumultuous week when momentum in stocks linked to artificial intelligence had momentarily lost steam.