The Philippines' manufacturing PMI rose to its highest so far this year in November, an IHS Markit/Nikkei survey found, buoyed by solid domestic demand.
Growth in new export orders also recovered after slowing for four months, while factories hired staff at the fastest pace since June 2014.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 50.3 in October to 52.6 in November, indicating substantial improvement of operating conditions in the country's manufacturing sector. Readings above 50 signal an expansion while readings below 50 signal a contraction.
European stock markets headed south, despite stronger than expected PMI readings out of the Eurozone and the U.K. The Tech Selloff, which seemed to abate during the Asian session, resumed with force in Europe as investors eye the progress of US tax reform plans, after the Senate suspended voting on the bill until Friday, after a key compromise to win a majority collapsed.
The increase in growth has resulted in a further rise in the backlogs of work, with November's increase the fastest in the current seven month sequence of growth.
The Eurozone manufacturing PMI was revised up to 60.1 in the final reading from 60.0 reported initially and versus 58.5 in the previous month.
Manufacturing growth hits highest level in 18 years
The findings add to evidence that a recovery in Asia's third-largest economy is on track. It was still lower compared to the 56.3 posted a year earlier.
"India's manufacturing economy advanced on its path to recovery as disruptions from the recent tax reform (GST) continues to diminish", said Aashna Dodhia, economist at IHS Markit.
But cost pressures remained strong in November, and may push inflation to breach the Reserve Bank of India's medium-term target of 4 percent.
The latest rise in new orders was one of the strongest in the survey's history, while growth in new export orders firmed to the sharpest in nearly three years.
There were signs, however, that inflationary pressures remained strong.
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