By KELVIN CHANHONG KONG (AP) — European shares fell back, erasing early gains, on Tuesday after surveys showed China's factory activity rose to a two-year high last month. While the strong manufacturing data suggests China's economy may be stabilizing, some worry the rebound in industrial output could signal risks of a bubble. KEEPING SCORE: European shares opened higher but then fell back, with Germany's DAX down 0.1 percent at 10,649.08 and France's CAC 40 losing 0.4 percent to 4,492.35. Britain's FTSE 100 edged 0.1 percent lower to 6,949.23. U.S. stocks were poised to open higher. Dow futures rose 0.2 percent to 10,694.00 and broader S&P 500 futures increased 0.3 percent to 2,125.70. CHINA DATA: Caixin's monthly purchasing managers' index rose to 51.2 in October from 50.1 the previous month as production grew at its fastest pace in more than five years on strong domestic demand. A similar index by the official Chinese Federation of Logistics & Purchasing rose to 51.2 from 50.4 in September. Both are at their highest level since July 2014. They are based on 100-point scales on which the 50 mark separates expansion from contraction. ANALYST VIEWPOINT: "This was also the strongest improvement in Chinese manufacturing conditions in two years. Much of the uplift came from domestic sources, as new export orders contracted marginally in October," said Bernard Aw, an economist at IHS Markit. "The headline index suggested that government stimulus policies taken earlier may be starting to take effect in the manufacturing sector." ASIAN SCORECARD: Hong Kong's Hang Seng index jumped 0.9 percent to close at 23,147.07 and the Shanghai Composite index added 0.7 percent to 3,122.44. Japan's Nikkei 225 edged 0.1 percent higher to 17,442.40, and India's Sensex rose 0.2 percent to 27,995.38. South Korea's Kospi slipped less than 0.1 percent to 2,007.39 and the S&P ASX/200 of Australia lost 0.5 percent to 5,290.50. Shares in Southeast Asia were mixed.