Chinese shares opened higher on Tuesday as the markets anticipated more substantive policy support following data showing a continued contraction in the country's manufacturing sector.
The Shanghai Composite Index, the main gauge of Chinese stocks, went up 0.7% to 3,979.88. The Shenzhen Component Index rose 2.42 points to 14,017.42.
Factory activity in China contracted for the second straight month in August, with the official manufacturing Purchasing Managers' Index (PMI) coming in at 49.8. While this beat the consensus forecast of 49.5 and the previous month's figure of 49.2, it remained below the 50-point threshold that separates expansion from contraction.