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The report shows an uptick in growth in New Orders, with December's outturn the strongest in the current 17-month sequence of growth and third-fastest in the survey's history. The December figure was the highest reading since August. That helped the country's to grow close to 7 percent in the first nine months of 2017.

This is for the fifth consecutive month that the index has come in above 50-point mark that separates expansion from contraction.

Operating conditions for manufacturing in India improved at the strongest rate in five years during December 2017, according to Nikkei India Manufacturing Purchasing Managers' Index. In order to support output growth, manufacturers raised employment at a substantial pace that was one of the fastest seen throughout the survey to-date.

Increased consumer demand also reinforced optimism that output will increase in the next 12 months.

PMI for the high-tech sector picked up further to 53.8 in December from 53.2 in November, NBS data showed.

The slowdown was reflected in the drop in buying activity in December, the sharpest decline since September.

Production increased sharply on the back of a solid increase in new orders.

Growth in China's manufacturing sector slowed slightly in December as a punishing crackdown on air pollution and a cooling property market start to weigh on the world's second-largest economy. "Industry in Việt Nam therefore looks to be in good shape heading into 2018", Andrew added. Concerns over relatively subdued client demand and government policy changes dampened confidence. The official PMI dropped to 51.6 from 51.8 in November, as more companies complained about the impact on their operation from tightened supply of energy and other raw materials and rising costs of transportation. This was consistent with the strongest improvement in the health of the sector since December 2012. The Caixin China General Services Business Activity Index will be published on Thursday.