Investing.com - Asian stock markets advanced on Thursday, but were off the highest levels of the session following the release of weak Chinese manufacturing data, which added to worries over the Asian nation’s economic outlook.
During late Asian trade, Hong Kong's Hang Seng Index edged up 0.2%, Australia’s ASX/200 Index added 0.45%, while Japan’s Nikkei 225 Index rose 0.4%.
Asian equities were higher after the open, as market sentiment was lifted by news that China cut credit requirements for rural banks.
A Japanese government report showing an unexpected trade surplus and higher-than-expected exports last month provided further support for regional equities.
But markets came off their highs following the release of a preliminary estimate of HSBC’s China manufacturing Purchasing Managers’ Index, which fell to a four-month low and remained in contractionary territory for the fifth consecutive month.
The downbeat data added to lingering concerns over a slowdown in the world’s fastest growing economy.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Shares in Hong Kong erased gains of as much as 0.6% in wake of the weak China data, as raw material producers came under pressure.
Oil giant PetroChina saw shares slump 1.5%, Aluminum Corporation of China, or CHALCO, retreated 0.9%, while shares in Jiangxi Copper Company shed 0.5%.
Financials were broadly weaker ahead of key earnings later this week. Agricultural Bank of China which will post earnings later in the day, first among the so-called "Big Four" Chinese banks, shed 0.55%, while Industrial and Commercial Bank of China fell 0.8%.
Earlier in the day, the People's Bank of China cut reserve requirements for hundreds of branches of the Agricultural Bank of China in a move meant to free up CNY23 billion in funds for rural lending.
But shares in the property sector continued their recent run of losses, amid disappointment over the scope of the easing announcement. Sun Hung Kai Properties fell 0.6% and Henderson Land Development dipped 1.25%.
Elsewhere, the Nikkei managed to eek out small gains, as exporters gained on the back of data showing the nation posted its trade surplus in five months.
Automakers Honda and Nissan jumped 1.7% and 1.5%, while shares in Nikon, which gets more than 85% of its revenue overseas, added 1.1%.
On the downside, investment bank Nomura Holdings dropped 1.25% after the brokerage was linked to an insider-trading case by a person familiar with the matter.
Meanwhile, in Australia, shares in the financial sector rebounded from their recent run of declines, with National Australia Bank up 1.2% and Westpac Banking Group gaining 1.1%.
Looking ahead, the outlook for European stock markets was downbeat, as investors awaited euro zone data on manufacturing and service sector activity later in the day.
The EURO STOXX 50 futures pointed to a decline of 0.2%, France’s CAC 40 futures indicated a drop 0.15%, Germany's DAX futures shed 0.15%, while London’s FTSE 100 futures eased down 0.15%.
Later in the day, the euro zone was also to produce data on industrial production, while the U.S. was to publish official data on initial jobless claims.
In addition, European Central Bank President Mario Draghi and Federal Reserve Chairman Ben Bernanke were to speak at public engagements.
During late Asian trade, Hong Kong's Hang Seng Index edged up 0.2%, Australia’s ASX/200 Index added 0.45%, while Japan’s Nikkei 225 Index rose 0.4%.
Asian equities were higher after the open, as market sentiment was lifted by news that China cut credit requirements for rural banks.
A Japanese government report showing an unexpected trade surplus and higher-than-expected exports last month provided further support for regional equities.
But markets came off their highs following the release of a preliminary estimate of HSBC’s China manufacturing Purchasing Managers’ Index, which fell to a four-month low and remained in contractionary territory for the fifth consecutive month.
The downbeat data added to lingering concerns over a slowdown in the world’s fastest growing economy.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Shares in Hong Kong erased gains of as much as 0.6% in wake of the weak China data, as raw material producers came under pressure.
Oil giant PetroChina saw shares slump 1.5%, Aluminum Corporation of China, or CHALCO, retreated 0.9%, while shares in Jiangxi Copper Company shed 0.5%.
Financials were broadly weaker ahead of key earnings later this week. Agricultural Bank of China which will post earnings later in the day, first among the so-called "Big Four" Chinese banks, shed 0.55%, while Industrial and Commercial Bank of China fell 0.8%.
Earlier in the day, the People's Bank of China cut reserve requirements for hundreds of branches of the Agricultural Bank of China in a move meant to free up CNY23 billion in funds for rural lending.
But shares in the property sector continued their recent run of losses, amid disappointment over the scope of the easing announcement. Sun Hung Kai Properties fell 0.6% and Henderson Land Development dipped 1.25%.
Elsewhere, the Nikkei managed to eek out small gains, as exporters gained on the back of data showing the nation posted its trade surplus in five months.
Automakers Honda and Nissan jumped 1.7% and 1.5%, while shares in Nikon, which gets more than 85% of its revenue overseas, added 1.1%.
On the downside, investment bank Nomura Holdings dropped 1.25% after the brokerage was linked to an insider-trading case by a person familiar with the matter.
Meanwhile, in Australia, shares in the financial sector rebounded from their recent run of declines, with National Australia Bank up 1.2% and Westpac Banking Group gaining 1.1%.
Looking ahead, the outlook for European stock markets was downbeat, as investors awaited euro zone data on manufacturing and service sector activity later in the day.
The EURO STOXX 50 futures pointed to a decline of 0.2%, France’s CAC 40 futures indicated a drop 0.15%, Germany's DAX futures shed 0.15%, while London’s FTSE 100 futures eased down 0.15%.
Later in the day, the euro zone was also to produce data on industrial production, while the U.S. was to publish official data on initial jobless claims.
In addition, European Central Bank President Mario Draghi and Federal Reserve Chairman Ben Bernanke were to speak at public engagements.