Asian markets mixed, China factory data underwhelms

Asian markets were mixed on Friday, with Tokyo supported by further weakness in the yen, while Hong Kong and Shanghai dipped after official data showed Chinese manufacturing saw a moderate slowdown.

Tokyo were up 0.35 per cent by the break and Sydney climbed 0.65 per cent while Hong Kong shed 0.56 per cent, Shanghai slipped 0.34 per cent and Seoul eased 0.74 per cent.

Beijing released official figures on Friday showing manufacturing activity had seen a slip last month. The purchasing managers index (PMI) came in at 50.4, down from December’s 50.6 and below the 51.0 forecast by economists.

A score above 50 indicates an expansion in manufacturing activity.

The data represent the first halt to a recent rise in activity that has fuelled hopes the world’s number two economy has emerged from the slumber it endured through most of last year.

However, a separate figure by banking giant HSBC showed the PMI at a more than two-year high of 52.3, up from 51.5 in December.

Tang Yonggang, an analyst at Hongyuan Securities, told Dow Jones Newswires: “The (official) PMI reading was lower than expectations, though it wasn’t too low, so the trend of expansion in manufacturing stays somewhat intact.”