Asia-Pacific markets traded mixed on Tuesday as China’s official data showed manufacturing activity contracted for the sixth consecutive month, though the decline was smaller than expected.

 

The National Bureau of Statistics reported China’s Manufacturing Purchasing Managers’ Index (PMI) at 49.8, slightly above the Reuters poll forecast of 49.6. While still below the 50-mark that separates growth from contraction, this was the strongest reading since March. Meanwhile, private surveyor RatingDog’s PMI for September came in at 51.2, surpassing economists’ expectations of 50.2 and marking its highest level since May.

 

Mainland China’s CSI 300 index opened flat.

 

In Australia, the Reserve Bank held benchmark policy rates at 3.6%, in line with expectations, as inflation remains at a one-year high. August’s headline inflation hit 3%, driven by housing, food, and alcohol, the highest since July 2024. “The RBA’s policy meeting on Tuesday is the key event in the Asia-Pacific region,” said Shier Lee Lim, lead FX and macro strategist for APAC at Convera. “Any change in tone or forward guidance could move AUD crosses, especially following recent volatility in building approvals.” Australia’s S&P/ASX 200 was little changed.

 

Japan’s Nikkei 225 fell 0.1%, while Topix traded flat. South Korea’s Kospi remained unchanged, and the Kosdaq dropped 0.34%. Hong Kong’s Hang Seng rose 0.45%, with the Hang Seng Tech Index gaining 1.01%. Shares of China’s Zijin Gold surged over 60% in their Hong Kong debut.

 

Overnight in the United States, major indices closed higher, as Wall Street regained footing after a dip in the artificial intelligence sector last week. The S&P 500 increased 0.26% to 6,661.21, the Nasdaq Composite rose 0.48% to 22,591.15, and the Dow Jones Industrial Average added 68.78 points, or 0.15%, to finish at 46,316.07.