China stocks close higher on strong factory PMI data

China stocks closed higher on Tuesday, led by new energy vehicle-related and mining shares, as strong factory data reflecting a bounce-back in its economy from the coronavirus crisis lifted sentiment.

The Shanghai Composite index ended 0.44 percent higher at 3,410.61.

The blue-chip CSI300 index was up 0.54 percent, with financial sector sub-index gaining 0.08 percent, the consumer staples sector rising 0.21 percent, the real estate index falling 0.25 percent and the healthcare sub-index sliding 0.36 percent.

Also Read: Asian stocks edge up after strong China manufacturing survey

The CSI new energy vehicles index gained 3.87 percent, while the CSI China mainland natural resource sector was up 1.43 percent.

The smaller Shenzhen index ended up 0.67 percent and the start-up board ChiNext Composite index was higher by 0.81 percent. China's factory activity expanded at the fastest clip in nearly a decade in August, bolstered by the first increase in new export orders this year, the Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) showed.

Defence-related stocks in China surged after fresh conflict reignited between Chinese and Indian troops at the border of both countries.

Also Read: Asia's factories shaking off Covid-19 gloom, China shines

Shares of Chinese electric car maker BYD Co Ltd in Shenzhen rose to daily limit of 10 percent after the company's coaches were selected for California purchasing contract.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.26 percent, while Japan's Nikkei index closed down 0.01 percent.

At 0708 GMT, the yuan was quoted at 6.8229 per US dollar, 0.37 percent firmer than the previous close of 6.8483.