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By Shri Navaratnam

(Adds information, quotes, updates/adds market levels)

SINGAPORE (MarketWatch) -- Asian stock markets were mostly higher Monday, with China and Hong markets rising sharply after solid manufacturing data in China.

The Tokyo market struggled as it was weighed by concerns over the outlook for earnings and a strong yen.

Japan's Nikkei Share Average was up 0.1%, Australia's S&P/ASX 200 was up 0.9%, South Korea's Kospi Composite was up 1.0%, Hong Kong's Hang Seng Index tacked on 2.0% and China's Shanghai Composite rose 1.6%. The Philippines market was closed Monday for All Saints Day. Dow Jones Industrial Average futures were up 73 points in screen trade.

Shares in China received a boost from solid October purchasing managers' index. The official China Federation of Logistics and Purchasing's PMI rose to 54.7 in October, from September's 53.8, indicating continued growth in manufacturing activity. The strong result was confirmed by the private sector China HSBC PMI, which rose to 54.8 in October, from 52.9 the previous month.

Bank of America-Merrill Lynch economist Lu Ting said the strong reading would give policymakers "more room" to allow the yuan to rise and noted there was still a small chance of another rate increase this year after last month's surprise hike.

China Construction Bank rose 1.2%, Zijin Mining added 4.6% and Sinopec tacked on 1.8%.

The PMI data also buoyed the Hong Kong market with big cap stocks leading the way. Hang Lung Properties rose 3.0% and Ping An Insurance advanced 3.2%. China Shenhua Energy advanced 4.1% after posting solid third quarter results.

Elsewhere in the region, some investors were cautious ahead of the U.S. Federal Reserve's policy meeting on Tuesday and Wednesday. There was some uncertainty over the scope of the quantitative easing measures that the Fed is widely-expected to unveil.