Australia shares gain

Australia led most Asian shares higher Tuesday, after modest improvement in Chinese manufacturing activity dispersed some concerns about sluggish growth in China. Australia's S&P/ASX 200 gained 0.7%, with the market paring early losses in the lead up to China's economic data. The preliminary HSBC HSBA.LN -0.52% China Manufacturing Purchasing Managers Index rose to 50.5 in September, compared with a final reading of 50.2 in August, HSBC Holdings PLC said. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction. Australian miners also trimmed losses, with BHP Billiton Ltd. BHP.AU +0.26% down 0.8% after falling 1.7% earlier in the session. Rio Tinto Ltd. was about flat, reversing from a 1.2% loss earlier in the day and Fortescue Metals Group Ltd. gained 2.0%. The Australian dollar, also known as the Aussie, traded near a seven-month low at US$0.89. However, the Hang Seng 0011.HK -0.77% Index slipped 0.2%, while the Shanghai Composite Index was up 0.2%, in a mixed reaction to the closely watched gauge of nationwide manufacturing, according to wsj.com