China's official gauge for manufacturing activity showed a smaller-than-expected contraction in September as Beijing intensified its efforts aimed at curbing industrial overcapacity amid sluggish domestic demand and global trade disruptions.

The Manufacturing Purchasing Managers' Index came in at 49.8, data from the National Bureau of Statistics showed, compared with expectations for 49.6, according to a Reuters poll. That reading, while still in contraction, was the strongest since March.

China's official manufacturing PMI has stayed below the 50-benchmark separating growth from contraction since April as manufacturers have grappled with tepid domestic demand, exacerbated by higher U.S. tariffs that have hit Beijing's exports to the world's largest consumer market.

Private surveyor R

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