China's manufacturing sector returned to contraction in October, according to official figures released in Beijing on Saturday. The National Bureau of Statistics said its purchasing managers' index fell to 49.4, below the 50-point mark that separates expansion from contraction. Any reading under 50 indicates that factory activity is shrinking.

The bureau said new export orders remained the weakest component of the survey. Production was also held back by the week-long National Day holiday at the start of the month. October readings have historically been depressed by the Golden Week break, when many factories halt production lines and shipping activity slows.

The official non-manufacturing PMI, which covers services and construction, hovered close to the 50 threshold. Construction activity remained subdued as the country's prolonged property downturn continued to weigh on new building starts. Holiday spending on travel and catering gave services providers a modest lift during the month.

The figures add to pressure on the People's Bank of China and the State Council to step up support for the world's second-largest economy before the end of the year. Economists at major investment banks, including Nomura and Goldman Sachs, have argued that further interest rate cuts and targeted fiscal spending would be needed to keep growth on track. Beijing has set an annual growth target of 4.5 to 5 per cent.

The private-sector RatingDog manufacturing PMI, compiled by S&P Global, is due on Monday and will offer a further read on smaller, export-focused firms. Investors will also watch October trade data, scheduled for release the following week. Those figures will show whether Chinese exporters continued to redirect shipments away from the United States towards Southeast Asia and Europe.