The reading of 55.4 represents a six-month high and contrasts with lower-than-expected manufacturing PMI surveys.
The gauges for new orders, retail spending and the logistics industry index grew, while tourist numbers for this week's Chinese holiday increased as well.
"The rising service PMI suggests that the recovery in Q313 was quite broad based," says Bank of America's Lu Ting. The "robust" service sector indicates that the chances of a hard landing are low. (previous)
The services PMI has helped boost sentiment in Hong Kong (EWH), where the Hang Seng is +0.8%.