Asian shares down on weak China data

HONG KONG: Asian markets were mixed Thursday as more weak data out of China added to concerns over a slowdown in the economy, while the yen was lifted after Japan posted a surprise trade surplus.

The latest batch of downbeat news from Beijing added to already soft trading sentiment after Wall Street provided an anaemic lead owing to poor US housing figures.

Tokyo rose 0.40 percent by the break and Sydney was 0.37 percent higher but Seoul fell 0.18 percent while Hong Kong shed 0.14 percent and Shanghai gave up 0.41 percent.

HSBC's preliminary Purchasing Managers' Index (PMI) showed China's manufacturing activity contracted further in March, continuing a trend that began in November.

The PMI fell to 48.1 in March compared with a final reading of 49.6 in February, HSBC said. A reading above 50 indicates the sector is expanding while a reading below 50 suggests a contraction.

The figures will fuel fears that the world's number-two economy is losing its strength after a string of negative data that have showed a marked slowdown in inflation and a record trade deficit.

Beijing's decision to target growth of 7.5 percent this year - below eight percent for the first time since 2004 - has also added to weak sentiment.

he export-dependent economy has come under severe strain as key markets in the United States and Europe struggle to get back on track. (AFP)