Asia report: Stocks fall as China's factory activity narrows

Markets in Asia finished Thursday on the back foot, after fresh data out of China showed a contraction in manufacturing activity there.

In Japan, the Nikkei 225 was down 1.53% at 27,661.47, as the yen weakened 0.24% against the dollar to last trade at JPY 139.29.

Robotics specialist Fanuc was down 0.53%, Uniqlo owner Fast Retailing slid 1.45%, and tech investing giant SoftBank Group was off 0.93%.

The broader Topix index was 1.41% lower by the end of trading in Tokyo, closing at 1,935.49.

On the mainland, the Shanghai Composite was off 0.54% at 3,184.98, and the technology-centric Shenzhen Component was 0.88% weaker at 11,712.39.

The private Caixin/Markit manufacturing purchasing managers’ index (PMI) came in at 49.5 for August, down from 50.4 in July.

That left the sector in contraction territory, as PMI readings below the 50-point mark denote shrinking in a sector, while those above 50 show expansion.

The Caixin reading came on the back of Beijing’s official manufacturing PMI on Wednesday, which was slightly ahead of expectations at 49.4.

Official PMI data in China is widely seen to represent large, state-affiliated industry, while the Caixin measure is more reflective of small-to-medium enterprises in the People’s Republic.

South Korea’s Kospi slid 2.28% to 2,415.61, while the Hang Seng Index in Hong Kong lost 1.79% to 19,597.31.

Seoul’s blue-chip technology stocks were weaker, with Samsung Electronics down 2.18%, and SK Hynix losing 2.94%.

Fresh data out of the Korean peninsula showed South Korea reaching a record trade deficit of $9.5bn in August.

That came after exports rose 6.6% year-on-year to reach $56.7bn in August, while imports surged 28.2% to $66.2bn.

Oil prices were in the red as the region went to bed, with Brent crude futures last down 2.54% on ICE at $93.21 per barrel, and the NYMEX quote for West Texas Intermediate losing 2.52% to $87.29.

In Australia, the S&P/ASX 200 was down 2.02% at 6,845.69, with miners leading the losses in Sydney.

BHP Group was down 7.61%, while Fortescue Metals lost 4.23% and Rio Tinto lost 2.1%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was the region’s odd one out, rising 0.08% to 11,609.82, as medical technology maker Fisher & Paykel Healthcare added 1.5%.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.29% at AUD 1.4659, while the Kiwi retreated 0.37% to NZD 1.6402.

Reporting by Josh White at Sharecast.com.