Chinese manufacturing continued to improve for a second month as the preliminary HSBC purchasing managers' index (PMI) for October ticked higher to 49.1 points from 47.9 in September, according to the latest data from Markit Economics.

This marks the best reading of the last three months.

"October's flash PMI reading continues to recover for the second month, thanks in part to a gradual improvement in the new orders index, which picked up to a six-month high," said Qu Hongbin, chief economist for HSBC Holdings PLC's China arm.

"However, external challenges still abound and pressures on the job market are lingering. This calls for a continuation of policy easing in the coming months to secure a firmer growth recovery."

Following the positive third quarter GDP figures released last week, concerns of a hard landing for the Chinese economy are being "put to rest", according to analysts at Digital Look.

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