China's factory activity surprisingly picked up pace in September, a private survey showed on Tuesday.
The HSBC's flash manufacturing Purchasing Managers' Index (PMI) rose to 50.5 from the 50.2 final reading in August, much better than expectations for a figure of 50, which separates expansion from contraction.
The Australian dollar gained 0.2 percent against the U.S. dollar, widening its gains against the greenback. Asian stocks were mixed with the Shanghai Composite outperforming the region by 0.4 percent.