Asian markets moved lower on Thursday, with Japan and Hong Kong leading the region down, as an important measure of Chinese manufacturing activity dropped to a seven-month low.
Japan’s Nikkei 225 index dropped 317.35 points, or 2.2%, to 14,449.18.
A firmer local currency resulted in Japanese stocks extending their losses from earlier in the session. Before the data came out, the market was already lower as it continued to come down from Tuesday’s sharp 3.1% rise — the market’s best daily gain since August, which was brought about by the Bank of Japan’s surprise move to double incentives to spur bank lending.
The Hang Seng Index in Hong Kong lost 270.14 points, or 1.2%, to 22,394.08, after the initial February reading on HSBC’s preliminary manufacturing purchasing managers index slid to 48.3 from a final score of 49.5 in January.
A score below 50 points to a contraction in factory activity, while a reading above 50 indicates an expansion.
The impact of the data was felt in Australia — a country with strong trade ties to China — where the Australian dollar fell to $0.8964 U.S. compared with $0.9002 U.S. late Wednesday in New York.
The yen also strengthened after the Chinese data came out, a sign of increased risk aversion, with the U.S. dollar falling below 102 yen.
The greenback was last at ¥101.70, compared with ¥102.31 late Wednesday in New York.
In corporate news, the Australian earnings season continued. Shares in Leighton Holdings shot 4.9% higher, after Australia’s largest contractor reported that its annual net profit had risen by 13%, as it replaced contracts in the weakening mining sector with projects in areas such as hospitals and hotel resorts.
Also in Sydney, shares in AMP jumped 9.3% higher, as the company’s full-year underlying profit was above expectations. However, the life insurer and pension manager reported a 2.5% fall in its annual profit as a rise in income-protection claims and a drop income on shareholder funds offset growth in other areas.
CHINA
The Shanghai CSI 300 Index discarded 21.22 points, or 0.9%, to 2,287.44, as the market was supported by oil companies. The sector was in focus due to news that China’s largest oil refiner, Sinopec plans to open up its domestic marketing and distribution operations to outside investors.
Shares in Sinopec were up 10%, after hitting the daily upper trading limit, while shares in PetroChina Co. added 4.7%.
In other markets;
Taiwan’s Taiex Index dipped 52.39 points, or 0.6%, to 8,524.62
Singapore’s Straits Times Index shed 2.15 points, or 0.1%, to 3,086.64
Korea’s Kospi Index ditched 12.36 points, or 0.6%, to 1,930.57.
The New Zealand Exchange 50 index subtracted 4.31 points, or 0.1%, to 4,909.83
In Australia, the S&P/ASX 200 inched forward 4.10 points, or 0.1%, to 5,412.24
