China stocks rallied significantly, with gains ranging from 4% to 8%, as the country's manufacturing sector contracted less than anticipated. The manufacturing Purchasing Managers' Index (PMI) for September came in at 49.8, which was better than expected. In contrast, Japan's Nikkei stock index experienced a sharp decline, falling more than 4%. The performance of major Chinese stocks such as NIO, XPEV, LI, BABA, JD, and PDD was highlighted amid these market movements.