Investing.com - Asian stock markets declined during late Asian trade on Friday, as Thursday's weak manufacturing activity data from the euro zone and China added to concerns over the outlook for global economic growth, while fresh action by the Federal Reserve remained uncertain.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.40%, Australia’s ASX/200 Index dropped 0.79%, Japan’s Nikkei 225 Index retreated 1.27%.
Data showed on Thursday that manufacturing activity in the euro zone rose more-than-expected in August, but remained in contraction territory for the 12th consecutive month, while service sector activity slumped to a two-month low.
A separate report showed that manufacturing activity in China slumped to a nine-month low in August, adding to concerns over a slowdown in the world’s second largest economy.
Meanwhile, investors were uncertain over whether the Fed will soon turn to fresh easing measures, after a string of U.S. data on Thursday painted a mixed picture of the strength of the country's economic recovery.
In Tokyo, the Nikkei tumbled amid global growth fears and ahead of a speech by Bank of Japan Governor Masaaki Shirakawa.
Steelmakers were broadly lower, tracking overnight weakness in U.S. counterparts after a Wall Street analyst downgraded the sector, saying that metal prices will decline. Nippon Steel plummeted 1.15%, JFE lost 2.99% and Nisshin Steel plunged 3.57%.
Automakers were also on the downside, led by Nissan, down 1.67%, while Honda and Toyota dropped 1.02% and 0.61% respectively.
Meanwhile, Kansai Electric Power and Tohoku Electric Power surged 5.77% and 6.13%, after Goldman Sachs upgraded its ratings on the companies to 'buy' from 'neutral' and said that raising tariffs by the power firms could be a "big positive" to reduce or avoid losses, even without nuclear restarts.
Meanwhile, shares in Hong Kong were weighed by sharp losses in energy stocks.
CNOOC pursued the week's losing streak, tumbling 1.07% after the company said on Tuesday that first half profit slid twice more than expected and slashed its dividend by 40%. Rival Sinopec dropped 0.95% ahead of its first half corporate results on Sunday.
Financials also contributed to losses, as shares in Bank of China plunged 1.34% after posting its slowest quarterly profit growth in more than three years. ICBC saw shares decline 1.56%, while HSBC and BOC Hong Kong lost 1.61% and 1.08% respectively.
Elsewhere, the decline in Australian shares was led by mining stocks, following China's weak manufacturing data and despite earlier comments by Reserve Bank of Australia Governor Glenn Stevens, saying that he sees no sign Australia’s mining boom is over.
Stevens also signalled that interest rates are likely to stay on hold unless there is a drastic change to the central bank's optimistic outlook for the economy.
Mining giants Rio Tinto and BHP Billiton dove 4.28% and 1.08%, while Whitehaven Coal sank 10.92%, posting the biggest drop in its shares in almost four years, after saying that Australian mining magnate Nathan Tinkler scrapped his takeover proposal that valued the company at AUD5.3 billion.
Woolworths also saw shares drop sharply, plummeting 1.37% after the supermarket chain posted a 13.2% slide in second-half net profit and said retail trading conditions in the current year will remain challenging.
Looking ahead, European stock futures pointed to a moderately higher open, amid reports Spanish government officials were in talks with the euro zone over an aid package.
The EURO STOXX 50 futures pointed to a 0.06% rise, France’s CAC 40 futures added 0.12%, London’s FTSE 100 futures inched up 0.03%, while Germany's DAX futures pointed to a 0.23% gain.
Later in the day, the U.S. was to release government data on durable goods orders.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.40%, Australia’s ASX/200 Index dropped 0.79%, Japan’s Nikkei 225 Index retreated 1.27%.
Data showed on Thursday that manufacturing activity in the euro zone rose more-than-expected in August, but remained in contraction territory for the 12th consecutive month, while service sector activity slumped to a two-month low.
A separate report showed that manufacturing activity in China slumped to a nine-month low in August, adding to concerns over a slowdown in the world’s second largest economy.
Meanwhile, investors were uncertain over whether the Fed will soon turn to fresh easing measures, after a string of U.S. data on Thursday painted a mixed picture of the strength of the country's economic recovery.
In Tokyo, the Nikkei tumbled amid global growth fears and ahead of a speech by Bank of Japan Governor Masaaki Shirakawa.
Steelmakers were broadly lower, tracking overnight weakness in U.S. counterparts after a Wall Street analyst downgraded the sector, saying that metal prices will decline. Nippon Steel plummeted 1.15%, JFE lost 2.99% and Nisshin Steel plunged 3.57%.
Automakers were also on the downside, led by Nissan, down 1.67%, while Honda and Toyota dropped 1.02% and 0.61% respectively.
Meanwhile, Kansai Electric Power and Tohoku Electric Power surged 5.77% and 6.13%, after Goldman Sachs upgraded its ratings on the companies to 'buy' from 'neutral' and said that raising tariffs by the power firms could be a "big positive" to reduce or avoid losses, even without nuclear restarts.
Meanwhile, shares in Hong Kong were weighed by sharp losses in energy stocks.
CNOOC pursued the week's losing streak, tumbling 1.07% after the company said on Tuesday that first half profit slid twice more than expected and slashed its dividend by 40%. Rival Sinopec dropped 0.95% ahead of its first half corporate results on Sunday.
Financials also contributed to losses, as shares in Bank of China plunged 1.34% after posting its slowest quarterly profit growth in more than three years. ICBC saw shares decline 1.56%, while HSBC and BOC Hong Kong lost 1.61% and 1.08% respectively.
Elsewhere, the decline in Australian shares was led by mining stocks, following China's weak manufacturing data and despite earlier comments by Reserve Bank of Australia Governor Glenn Stevens, saying that he sees no sign Australia’s mining boom is over.
Stevens also signalled that interest rates are likely to stay on hold unless there is a drastic change to the central bank's optimistic outlook for the economy.
Mining giants Rio Tinto and BHP Billiton dove 4.28% and 1.08%, while Whitehaven Coal sank 10.92%, posting the biggest drop in its shares in almost four years, after saying that Australian mining magnate Nathan Tinkler scrapped his takeover proposal that valued the company at AUD5.3 billion.
Woolworths also saw shares drop sharply, plummeting 1.37% after the supermarket chain posted a 13.2% slide in second-half net profit and said retail trading conditions in the current year will remain challenging.
Looking ahead, European stock futures pointed to a moderately higher open, amid reports Spanish government officials were in talks with the euro zone over an aid package.
The EURO STOXX 50 futures pointed to a 0.06% rise, France’s CAC 40 futures added 0.12%, London’s FTSE 100 futures inched up 0.03%, while Germany's DAX futures pointed to a 0.23% gain.
Later in the day, the U.S. was to release government data on durable goods orders.