Asian shares lower after weak China data

HONG KONG: Markets across Asia fell Thursday as investors were spooked by data showing Chinese manufacturing activity shrank in January for the first time in six months.

Regional markets were also given a soft lead from Wall Street, which ended mixed as a below-par corporate earnings season continued.

Tokyo fell 0.79 percent, or 125.07 points to close at 15,695.89, giving up earlier gains as the downbeat sentiment send traders into the yen and away from the dollar and euro.

Sydney fell 1.07 percent, or 56.8 points, to 5,263.0 while Seoul lost 1.16 percent, or 22.83 points, to close at 1,947.59 on news that South Korean economic growth slowed in the October-December quarter.

Shanghai slipped 0.47 percent, or 9.57 points, to 2,042.18 and in the afternoon and Hong Kong shed 1.44 percent.

Banking giant HSBC said Thursday that preliminary results showed manufacturing activity in China contracted sharply, adding to recent concern about the world´s number two economy.

The bank´s early reading on its purchasing managers´ index for this month came in at 49.6, well down from 50.5 in December and its lowest since July. A reading above 50 indicates growth, while anything below signals contraction.