Asia report: Markets mixed as traders digest China data

Markets in Asia were mixed on Thursday, with fresh data from China giving investors something to chew over.

In Japan, the Nikkei 225 was ahead 0.72% at 19,646.24, as the yen weakened 0.31% against the dollar to JPY 110.58.

Major exporting sectors, such as technology and carmakers, saw the biggest gains as a weaker yen made the country’s exports more attractive.

The can-Toshiba-sell-its-memory-chip-unit circus returned to the ring for another performance, this time with a consortium led by Bain Capital and including Apple and SK Hynix reportedly making a last-minute $18bn bid.

Toshiba reportedly failed to meet its own 31 August deadline to make a deal with an earlier consortium which involved Western Digital, with talks set to continue.

Shares in the technology conglomerate finished down 0.65%.

On the mainland, the Shanghai Composite lost 0.08% to 3,361.00, and the smaller, technology-heavy Shenzhen Composite was ahead 0.31% at 1,944.94.

Fresh official data out of Beijing showed the country’s manufacturing PMI improved to 51.7 in August, ahead of the 51.3 expected in a Reuters-polled forecast.

Its official services PMI fell to 53.4, however, from 54.5 month-on-month, taking it to the lowest reading since May 2016.

“If the data in September continues to be supportive, the growth outlook for China's second half could exceed market expectations for a slowdown,” noted ANZ Research senior China economist Betty Rui Wang.

South Korea’s Kospi finished down 0.38% at 2,363.19, while the Hang Seng Index in Hong Kong fell 0.44% to 27,970,30.

In Seoul, carmaker Kia Motors was off 3.54% after it was ordered to pay KRW 420bn in unpaid wages by a court.

The Bank of Korea stood pat on interest rates during the day, holding its official rate at 1.25% as widely expected by the markets.

Oil prices were sliding as gasoline futures in the US rose, with ex-Hurricane Harvey beginning to force the shutdown of some of the country’s major refineries.

They picked up again at the start of European trading, however, with Brent crude up 0.39% at $51.06 and West Texas Intermediate up 0.41% at $46.15.

In Australia, the S&P/ASX 200 tacked on 0.79% to 5,714.52, underpinned by broad strength across most sectors, as the hefty financials sector improved 0.71%.

Electronics and furnishing retail giant Harvey Norman tumbled 7.48% after it declared a smaller dividend for the year.

Its full-year profit was above estimates, however, at AUD 448.98m, against forecasts for AUD 414m.

Across the Tasman Sea in New Zealand, the S&P/NZX 50 rose 0.5% to 7.817.10, led higher by subscription broadcaster Sky - not related to its London-listed namesake - which was 2.9% firmer.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.18% at AUD 1.2673 and the Kiwi retreating 0.71% to NZD 1.3986.