"The official PMIs fell by more than expected this month, reinforcing our view that the improvement at the end of Q3 didn't mark the start of a sustained recovery," said Julian Evans-Pritchard, senior China economist at Capital Economics. Eyes were also on the development of Sino-US trade talks.
The Trump administration still expects to sign an initial trade agreement with China next month despite the cancellation of the APEC summit in Chile, while Chinese officials voiced optimism that Beijing and Washington can find a way to clinch the so-called Phase One trade deal next month. Beijing could remove extra tariffs imposed since last year on US farm products to ease the way for importers to buy up to $50 billion worth, rather than direct them to buy specific amounts, the head of a government-backed trade association said.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.41%, while Japan's Nikkei index closed up 0.37%. At 0712 GMT, the yuan was quoted at 7.0367 per US dollar, 0.27% firmer than the previous close of 7.056. So far this year, the Shanghai stock index is up 17.4% and the CSI300 has risen 29.1%, while China's H-share index listed in Hong Kong is up 3.8%. Shanghai stocks have risen 0.82% this month.