Asian stocks ended mixed on Tuesday following the release Chinese factory data but trade was quiet with Japan shut for the Autumnal Equinox holiday.
HSBC/Markit's preliminary gauge of Chinese factory activity for September rose to 50.5 from August's 50.2 final reading, beating expectations for a figure of 50. However, the optimism was offset by factory employment, which slumped to a five-and-a-half year low.
"With rumors that China is conceding defeat and will officially lower its growth target, along with speculation there won't be further stimulus, it was crucial for today's reading to show some positive signs. After last week's alarming property figures, concerns have certainly deepened and this will perhaps test officials' resolve and their commitment to only issuing targeted stimulus," said Stan Shamu, market strategist at IG.
Sentiment was also cautious after the U.S. and some Arab allies announced late on Monday that they carried out airstrikes against Islamic State militants in Syria for the first time.