Most Asian markets fell after a choppy trading session Thursday as data showed the Chinese manufacturing sector remained soft in May and as European leaders remained divided on steps to address the region’s debt crisis.
Japan’s Nikkei 225 Index inched forward 6.78 points, or 0.1%, to 8,563.08
The Hang Seng Index in Hong Kong fell another 119.79 points, or 0.6%, to 18,666.40
Japanese and South Korean stocks climbed on bargain buying in the two markets, which rank among the worst performing in the region so far this month.
The performance in Asia came as investors remained focused on politics in Europe amid fears of Greece’s exit from the euro-zone.
The uncertainty pushed the euro to a 22-month low against the dollar overnight. Strength in the Japanese yen pressured some Tokyo-listed exporters, as the euro dropped below the key ¥100 level, while the dollar remained below ¥80.
Canon Inc. dropped 2.2% and Mazda Motor Corp. slumped 3.7%. But bargain buying in some other stocks helped pull the market higher, as Fanuc Corp. rose 0.8%, Fast Retailing Co. climbed 0.7% and Japan Tobacco Inc. added 1.1%.
Renesas Electronics Corp. rose 1.9% following a Yomiuri Shimbun report the struggling tech major is planning a tie-up with Taiwan Semiconductor Manufacturing Co. TSMC shares also rose 1.9% in Taipei.
In Australia, financial stocks lost ground, while resource firms pared gains following the China data.
BHP Billiton Ltd. rose 0.2%, iron-ore producer Fortescue Metals Group Ltd. dropped 1.8% and Oz Minerals Ltd. lost 1.8%.
Shares of Rio Tinto Ltd. rose 0.1% after the head of its iron-ore division reportedly said the miner is on track to boost output to more than 350 million tonnes a year by 2015.
Trading in AGL Energy Ltd. was suspended as the firm conducts a 900-million-Australian-dollar ($877.5 million U.S.) capital raising to help fund its bid for a Victorian power station after Australia’s competition watchdog cleared the deal.
CHINA
Preliminary data from HSBC showed China’s manufacturing Purchasing Managers’ Index further contracted in May. The data, however, also led to hopes that Beijing could loosen its policies in the near-term.
Shanghai’s CSI 300 Composite Index fell 21.61 points, or 0.8%, to 2,595.26
On mainland bourses, financial services and transportation sector stocks lost ground, with Citic Securities Co. losing 1.2%, China Life Insurance Co. slipping 0.7% and China Cosco Holdings Co. dropping 1%.
In other markets;
Singapore's Straits Times Index erased 0.89 points to 2,779.53
Korea’s Kospi Index gained 5.85 points, or 0.3%, to 1,814.47
Taiwan’s Taiex Index shed 22.86 points, or 0.3%, to 7,124.89
New Zealand’s NXZ Index gave back 14.01 points, or 0.4%, to 3,496.19
Australia’s ASX Index slipped 11.19 points, or 0.3%, to 4,055.85
