The final Markit/Nikkei manufacturing Purchasing Managers' Index (PMI) for Japan increased to 52.4 in October from 51.0 in September, down from the preliminary reading of 52.5.

A reading below 50 indicates contraction of activity.

The index was driven by a rise in new orders.

"Operating conditions at Japanese manufacturers improved substantially at the start of the final quarter of 2015. Growth in production accelerated to the fastest since February, underpinned by a sharp rise in total new orders," economist at Markit, Amy Brownbill, said.