Asian equity markets kicked off September higher after two separate readings of Chinese factory activity confirmed hopes of a recovery in the world's second-largest economy.
HSBC's private survey of Chinese manufacturing activity crossed the key 50-level for the first time in four months in August, in line with last week's flash reading. The data follows the government's more bullish official purchasing manager's index (PMI), which hit a sixteen month high in August.
"It's interesting to see once again, despite all the emerging market volatility, the fear of Fed tapering and the geopolitical risk, China once again became the stabilizing factor," said Jian Chang, chief China economist at Barclays. But despite the good data, Chang still expects annual growth to slow down towards year-end.