China's manufacturing activity rebounded further in June, government data showed on Tuesday.
The official Purchasing Managers' Index (PMI) came in at 51, in line with a forecast from Reuters and above the 50.8 reading in May.
Separately, HSBC said the final reading of its China PMI stood at 50.7 in June compared with a flash estimate of 50.8.
"The official PMI is certainly very positive, and also in terms of China's growth target being achieved," Greg Matwejev, director, currency hedge fund sales and trading, told CNBC.
China's benchmark stock index opened 0.14 percent higher, while Australian shares traded 0.2 percent higher following the PMI data.
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The Australian dollar, also sensitive to data from Australia's main trading partner, was little changed around $0.9425.
The PMI data is the latest sign of a recovery in the Chinese economy thanks to targeted stimulus measures from Beijing to support growth.
Late Monday, China said it would relax the rules used for calculating the amount of deposits that banks can re-lend as loans, in what is seen as the latest in a package of "mini stimulus" measures.