Australian shares found a steadier footing on Tuesday thanks to a rebound in oil and gas producers, but investors showed no conviction ahead of a closely watched survey of China's manufacturing sector.
The S&P/ASX 200 index ended 0.7 percent, or 37.4 points, higher at 5,103.6, steadying from Monday's 2.0-percent slide.
Traders said China's flash PMI survey on Wednesday will set the tone for the market with any signs of weakness likely to hit risk appetite hard.
Sectors that were heavily sold off on Monday found some buyers. Among the best performers were oil and gas producers, with Woodside Petroleum closing 2.8 percent higher.
New Zealand's benchmark NZX 50 index finished up 0.2 percent, or 13.3 points, at 5,696.8.
Worries about slowing growth in China, Australia's single biggest trading partner, coupled with uncertainty over when the Federal Reserve will hike interest rates have conspired to knock the market lower. China's flash September PMI survey, due on Wednesday, will be closely watched.
The big four local banks were in better shape with Westpac Banking Corp rising 0.5 percent, following a near 3-percent drop on Monday.
Oil and gas producers were also winners thanks to a rally in oil prices overnight. Woodside Petroleum and Santos were both more than 3.0 percent higher.