According to Fitch Ratings, Asian factories continued to shake off the coronavirus gloom in August as more bright signs in China raised hopes of a firmer recovery in global demand, reducing pressure on policymakers to take bolder steps to avert a deeper recession.

Manufacturing activity in China expanded at the fastest clip in nearly a decade in August, as factories ramped up output to meet rebounding demand, a private survey showed. New export orders rose for the first time this year.

The upbeat findings contrasted with an official survey on Monday, which showed China's factory activity grew at a slightly slower pace in August. But fears of a resurgence in infections in some economies may discourage firms from boosting capital expenditure and delay a sustained rebound for the Asian region, some analysts say.

China's Caixin/Markit Manufacturing Purchasing Managers' Index(PMI) rose to 53.1 in August from July's 52.8, marking the biggest rate of expansion since January 2011.

Japan and South Korea both saw factory output contract at the slowest pace in six months in August, T expectations the region's export powerhouses have past their worst from a collapse in demand after COVID-19 struck.

The spill-over to other parts of Asia, however, remains patchy. While manufacturing activity rose in Taiwan and Indonesia, they slid in the Philippines, Vietnam and Malaysia.