Asian markets closed lower on Friday despite China manufacturing activity beating expectations, as select tech shares around the region sold off.
The Nikkei 225 folded 186.87 points, or 0.9%, to 20,033.43
The Hang Seng Index dwindled 200.84 points, or 0.8%, to 25,764.58
Japan’s core Consumer Price Index for the month of May rose 0.4% on year, in line with expectations. May industrial production figures reflected a fall of 3.3%, compared with the previous month
In Japan, Nintendo lost 2.8% and Yahoo Japan was off 1.4%, while in Taiwan, Hon Hai shed 1.7%
Tech stocks in South Korea were mixed following the fall in big name technology companies on Wall Street overnight. Samsung Electronics closed down by 0.8% and SK Hynix fell 1.6%.
The Australian dollar, which is sensitive to Chinese economic data, climbed for a third straight session to trade at $0.7672 U.S. late afternoon local time, trading as high as $0.7712 following the news. The rise in the Aussie also comes on the back of a rally in iron ore prices, which have increased for three straight sessions.
CHINA
The CSI 300 shaved off 2.03 points, or 0.1%, to 3,666.80, as President Xi Jinping visited Hong Kong ahead of the 20th anniversary of the Hong Kong handover.
In economic news, China's manufacturing activity accelerated more than expected in June, suggesting the world's second-largest economy continued to confound expectations for a slowdown. The official manufacturing PMI rose to 51.7, compared with the 51.0 forecast.
The yuan strengthened against the U.S. dollar for the fourth consecutive session and is set for its best week since 2005. The on-shore yuan traded at 6.7805 to the dollar late afternoon. In the offshore market, the yuan traded at 6.7790 to the dollar.
The People's Bank of China had set the yuan midpoint at 6.7744 per dollar before the market open. Media reports had this at its strongest level since last November.
In other markets
In Taiwan, the Taiex index subtracted 26.58 points, or 0.3%, to 10,395.07
In Korea, the Kospi index regressed 3.87 points, or 0.2%, to 2,391.79
In Singapore, the Straits Times Index hesitated 32.17 points, or 1%, to 3,226.48
In New Zealand, the NZX 50 lost 74 points, or 1%, to 7,611.44
In Australia, the ASX 200 collapsed 96.61 points, or 1.7%, to 5,721.49
