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China's Purchasing Managers Index (PMI), a preliminary readout of the country's manufacturing activity, unexpectedly expanded to 50.5 percent in January of 2012, the highest level since October, indicating that a slowdown in the world's second-largest economy may be stabilising, reports the Xinhua news agency.

According to Bloomberg, Asian stocks advanced, with the regional benchmark index extending its biggest monthly rally in more than a year, after the PMI figure was released.

The country's PMI stood at 50.3 percent in December, 49 percent in November and 50.4 percent in October, states the China Federation of Logistics and Purchasing (CFLP).

A PMI reading of 50 percent demarcates expansion from contraction.

The CFLP's sub-index for new orders hit 50.4 percent in January, up 0.6 percentage points from December.

The sub-index for purchase prices rose 2.9 percentage points from December to 50 percent in January.

Last month, nine industries, including tobacco and beverage manufacturing, agricultural food processing and food production, enjoyed a PMI of over 50 percent, while sectors including wood processing and furniture manufacturing registered under 50 percent, according to the statement.

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