Asian indexes lifted by strong China manufacturing report

Caixin's monthly purchasing managers' index rose to 51.2 in October from 50.1 the previous month as production grew at its fastest pace in more than five years on strong domestic demand.

Much of the uplift came from domestic sources, as new export orders contracted marginally in October, said Bernard Aw, an economist at IHS Markit.

The headline index suggested that government stimulus policies taken earlier may be starting to take effect in the manufacturing sector.

Market players are cautiously watching day-to-day developments of the U.S. presidential campaign, with just over a week to the election.

The central bank did downgrade its inflation outlook, saying it expects to achieve a 1.5 percent inflation rate, rather than 1.7 percent, in the fiscal year that begins in April.

Recent manufacturing data have shown a slight uptick in production that economists say could signal the stagnant economy is gaining strength.