Market Update
Asian markets drifted into the negative zone Thursday after a preliminary reading of China's manufacturing activity showed contraction.
The flash reading of HSBC/Markit China manufacturing purchasing managers' index declined to a six-month low of 49.6, down from a final print of 50.5 in December -- marking the economy's first contraction in six months. Analysts were expecting the reading to come in at 50.3. ( A reading above 50 indicates economic expansion and vice versa.)
Investors reacted negatively to the news with stocks in mainland China, Hong Kong as well as Australia turning lower after the release of the reading.
The Shanghai Composite erased 0.5%, Hang Seng was down 1.4% while Sydney's All Ordinaries lost 1.1% at the time of writing.
Japan's Nikkei, which was trading with gains on the back of a softer yen, too retreated, down 0.1% at 12:30 p.m. Tokyo time.
Mumbai's BSE Sensex slipped 0.1% at open, following the regional trend.
Stocks on the Move
Financial players were among top laggards in Hong Kong. Bank of China erased more than 2%, while ICBC and China Construction Bank slipped around 1.8% each.
Property developers moved off yesterday's highs. China Resources Land gave up 2.5% while Sino Land Co. lost 1.7%.
Shanghai-listed real estate giant Gemdale Corp. retreated around 1.4% while the broader Shenzhen-listed China Vanke was down 2%.
Among others, casino player MGM China Holdings eased 0.5% following a ratings downgrade. Others in the sector were also trading lower. Sands China fell 3.7% while Galaxy Entertainment dropped 2.7%.
In Australia, miners underwent selling pressure after weak Chinese manufacturing data. China is Australia's biggest trading partner for resources, and investors were worried a slowdown in China's industrial activity could curb the demand for metals.
Diversified iron-ore miner Fortescue Metals Group slumped over 2% while index-heavy weight BHP Billiton dropped 1.9%. Rio Tinto traded down 1.3%.
In the financials segment, top banks NAB and ANZ erased around 1% while Westpac Banking was down close to 2%.
Insurance Australia Group plunged around 5% after the insurance provider slashed its growth forecast for gross premiums.
Japanese exporters were trading higher earlier in the session as the yen softened against the dollar overnight. However, those gains were short-lived as concerns over China's economic growth undermined sentiment.
Nissan Motor reversed 2.7%, Nintendo Co. lost around 1% while Sharp Corp. erased 1.3%.
Some rare gainers included Panasonic Corp. (up 2.4%), Sony Corp. (up 0.8%) and Advantest Corp. (up 1%).
In earnings-related news, Nidec Corp. jumped 3.6% after upgrading its full-year profit forecast and announcing a share buyback.
Mumbai's Sensex opened slightly lower after ending yesterday's trade at a record high of 21,337.67.
But weak overseas cues gave investors little reason to cheer. On the losers' side, Mahindra & Mahindra eased 1.5%, ONGC gave up 1.3%, Wipro lost 1% while Reliance Industries, TCS, Bajaj Auto and Hindalco Industries slipped 0.5% each.