The Japanese yen strengthened against the other major currencies in the early European session on Tuesday amid risk aversion, as European shares continued Asian session's losses as another batch of disappointing Chinese economic figures rekindled worries over global growth.

The U.K.'s FTSE 100 index is currently down 2.37 percent or 147.78 points at 6,100, France's CAC 40 index is down 2.49 percent or 115.70 points at 4,537 and Germany's DAX is down 2.59 percent or 265.61 points at 9,993.

Data from the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed that the Chinese manufacturing sector slipped into contraction in August, with a purchasing managers' index score of 49.7. That was in line with forecasts and down from 50.0 in the previous month.

Separately, the latest survey from Caixin revealed that the manufacturing sector in China contracted at a faster rate in August, as its PMI hit a six-year low reading of 47.3. That's higher than last month's flash estimate of 47.1, but it's down sharply from 47.8 in July.

In other economic news, data from Nikkei showed that the manufacturing sector in Japan continued to expand in August, and at a faster pace, with a final PMI score of 51.7. That was slower than last month's preliminary reading that suggested a score of 51.9, although it was up from 51.2 in July.

Data from the Ministry of Finance showed that the capital spending in Japan was up 5.6 percent on quarter in the second quarter of 2015. That was well shy of forecasts for an increase of 8.8 percent and down from 7.3 percent in the first quarter.

In the Asian session today, the yen held steady against its major rivals.

In the European trading, the yen rose to a 4-month high of 124.66 against the Swiss franc and nearly a 4-week high of 135.05 against the euro, from early lows of 125.75 and 136.23, respectively. If the yen extends its uptrend, it is likely to find resistance around 123.00 against the franc and 133.00 against the euro.

Against the pound and the U.S. dollar, the yen advanced to an 8-day high of 183.21 and a 6-day high of 119.59, from early lows of 186.22 and 121.26, respectively. The yen may test resistance near 179.00 against the pound and 117.00 against the greenback.

Against the Australia, the New Zealand and the Canadian dollars, the yen climbed to a 6-day high of 84.56, 1-week high of 75.73 and a 4-day high of 92.29, from early lows of 86.45, 77.21 and 90.39, respectively. On the upside, 82.00 against the aussie, 71.00 against the kiwi and 89.00 against the loonie are seen as the next resistance levels for the yen.

Looking ahead, Canada GDP data for second quarter, Markit's final U.S. manufacturing PMI for August, the Institute for Supply Management's manufacturing PMI for August and construction spending data for July are slated for release in the New York session.

At 12:00 pm ET, Swiss National Bank head Thomas Jordan addresses a business gathering in Zurich. Subsequently, Federal Reserve Bank of Boston President Eric Rosengren is expected to speak on the economic outlook before the Forecasters Club of New York at 1:10 pm ET.

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