Data from the China statistics bureau showed that profit at industrial companies grew 0.4% to 563.4 billion yuan in September, reversing a 0.6% annual decline in August. For the first nine months of the year, profits climbed 7.9% compared with the same period last year.
The US Federal Reserve will meet on Tuesday and Wednesday and its Federal Open Market Committee is widely expected to end its asset purchase programme. Investors are also cautious over any comments on the direction of interest rates.
There is expectation that the Fed will probably eliminate its remaining $15 billion in monthly bond-buying when it concludes a policy meeting tomorrow, and leave its key interest rate unchanged at a range of zero to 0.25%.
Among Asian bourses
Aussie market falls on weak commodity prices
Australian share market closed slight lower, as concerns about weakness in commodity prices, particularly iron ore and crude oil prices, overshadowed better than expected Chinese industrial profit numbers. The benchmark S&P/ASX 200 Index declined 0.12% to 5452.60 and the broader All Ordinaries Index decreased 0.15% to 5434.
Shares of material sector declined, with Rio Tinto falling 1.3% to A$59.03, while resources giant BHP Billiton shed 1.5% to A$33.32 after the company unveiled plans to sell US shale assets. Iron ore miner Fortescue Metals Group closed steady at A$3.35. Gold miner Newcrest erased 1% to A$9.70.
Energy stocks were also lower, with Woodside Petroleum falling 1.5% to A$39.54 and Santos down by 0.9% to A$12.82, as Brent crude oil fell 0.5% to $US85.68 a barrel.
Beach Energy declined 6.8% to A$1.235 after mid-cap oil and gas player posted a 14% decline in September quarter revenues, with sales dragged down by a dip in oil prices and softer oil production. Beach Energy revenues for the three month period slid to A$232.9 million, as production dipped to 2.4 million barrels of oil equivalent, down from 2.46 million a year earlier.
Nikkei closes down 0.38%
Japanese share market closed slightly down, as profit booking resurfaced on tracking weak cues from offshore market overnight and on caution ahead of the outcome and commentary form the US Federal Reserve's Open Market Committee meeting on late Wednesday. The Nikkei 225 index at the Tokyo Stock Exchange eased 0.38%, or 58.81 points, to 15329.91, while the Topix index of all first-section issues fell 0.18%, or 2.28 points, to 1252.
Shares of nonferrous metals companies declined the most in Tokyo, with Fujikura slumping 7.9% to 446 yen. Furukawa Electric Co. fell 3.2% to 181 yen after the rating of the maker of wires and metal products was cut at Credit Suisse Group AG.
IHI Corp dropped 6% to 505 yen after its operating profit guidance of 28.9 billion yen came in slightly lower than many brokerage estimates.
Kajima declined 6% to 482 yen after cutting its net income forecast for the current year to 14 billion yen from 17 billion yen.
Electronics retailer Yamada Denki gained 0.6% after it raised its first half recurring profit estimate to Y12.1 billion from Y9.0 billion, reflecting a rebound in the gross margin and a squeeze on costs. Yamada Denki is seen as a bellwether measure of domestic demand trends that are seen as critical to helping the Bank of Japan to achieve its inflation target.
Steelmaker JFE Holdings closed up 2.5% to 2013 yen after raising its full year consolidated operating profit guidance by 15% to Y200 billion to reflect a more favorable currency market and better-than-expected sales.
Shanghai Composite bounces 2.07%
Mainland China share market finished the session sharp higher, registering first gain in six consecutive sessions, amid bottom fishing across the board after better than expected industrial profits for September and as President Xi Jinping signaled a nationwide expansion of free-trade zones. The benchmark Shanghai Composite Index, which tracks both A and B shares, ended higher 2.07%, or 47.43 points, at 2337.87.
China is looking to build more Free Trade Zone projects on the lines of the one launched in Shanghai last year, President Xi Jinping said on Monday. Xi said the experience gained at Shanghai Pilot Free Trade Zone (Shanghai FTZ) can be copied to more places "as soon as possible".
As per the blueprint of reform, FTZ which functions from an area of 29 sq kms in Shanghai, would have specific tasks which include easing restrictions on yuan, investment and trade to spearhead a new strategy to spur growth.
Shares of brokerage companies advanced the most in Shanghai, benefiting from the broad-based optimism. Citic Securities, China's largest brokerage, was up 3.2% at 12.72 yuan, while Everbright Securities soared 5.8% to 10.19 yuan.
Property developers also rallied, buoyed by hopes for further monetary and fiscal policy support from the Chinese government for the long-depressed sector. In a bid to propel the real estate sector, a key driver of China's economy, the country's central bank and banking regulator late last month told banks to loosen mortgage rules to allow more second home buyers to qualify for cheaper loans. China Vanke was up 2.7% at 9.02 yuan, while Poly Real Estate Group Co. gained 3.5% at 5.55 yuan.
Hang Seng ends 1.63% stronger
Hong Kong equity market closed sharply higher on Tuesday, 28 October 2014, registering first gain in four consecutive sessions, boosted by tracking surge in mainland markets, with financial, industrial and realty stocks leading the rally. The Hang Seng Index advanced 1.63%, or 377.13 points, to 23520.36. Turnover increased to HK$67.71 billion from HK$56.7 billion on Monday.
Automakers were higher, with Great Wall Motor Co adding 3.4% to HK$32.05 on reports quoted its president as predicting improving sales on the back of new model launches. Electric-car maker BYD Co jumped 3.5% to HK$51.40 and Brilliance China Automotive Holdings 0.6% to HK$12.94.
Macau gaming players also rebounded on bargain buying after yesterday's decline. Sands China (01928) added 1.5% to HK$44.7. Galaxy Ent (00027) gained 1.3% to HK$47.7. Wynn Macau (01128) inched up 0.8% to HK$26.75.
Telecom stocks closed higher. China Telecom (00728) soared 5.6% to HK$4.91 on a 9.8% growth of 9-month net. China Mobile (00941) put on 2.8% to HK$91.45. China Unicom (00762) rose 2% to HK$11.38.
Shares of shoe retailer Belle International Holdings jumped 9.9% to HK$9.32 after posting stronger than expected earnings with generous dividend payout. It was the top blue-chip winner of the day.
Sensex trades higher
Indian stock market was trading higher in late afternoon trade, led by shares of banking, capital goods and healthcare companies. At 3.14 pm IST, the Sensex was trading higher by 0.50%, or 132.98 points, at 26,885.88 points, while the National Stock Exchange's broader barometer 50-share CNX Nifty was trading higher by 0.48%, or 38.45 points, at 8,030.15 points.
Among gainers, Sun Pharmaceutical Industries rose 4.29%, while Cipla added 2.8%. Among losers, Hero MotoCorp fell 1.79%, while Bharti Airtel fell 1.10%.
Sun Pharmaceutical Industries surged after Ranbaxy Laboratories reported a turnaround Q2 results. In April 2014, Sun Pharma acquired Ranbaxy in $4 billion landmark transaction.
R S Software India jumped after the company said its board of directors will meet on 7 November 2014, to consider stock-split.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 1.7% to 8773.555. Malaysia's KLCI rose 0.14% to 1825.68. New Zealand's NZX50 rose 0.08% to 5338.33. Singapore's Straits Times index fell 0.45% at 3211.65. South Korea KOSPI fell 0.33% to 1925.68. Indonesia's Jakarta Composite index slid 0.46% to 5001.30.