By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asian stock markets slipped Friday to
start the new month on a broadly downbeat note, with a pair of
lackluster manufacturing surveys from China doing little to help
sentiment.
Hong Kong's Hang Seng Index declined 0.3%, although the Shanghai
Composite Index was almost flat after swinging between gains and
losses.
Japan's Nikkei Stock Average slipped 0.1%, New Zealand's NZSX 50
retreated 0.2%, and Australia's S&P/ASX 200 index lost 0.5%.
South Korean markets were closed for a holiday.
While Asian stocks surged Thursday, the last session of
February, U.S. shares ended with small losses later in the day.
Read: U.S. stocks stall in stretch toward record
Mixed economic data dampened sentiment on Wall Street, as
markets looked toward draconian government spending cuts set to
begin Friday. Read: Sequester cuts near as Senate bills fail
The losses for U.S. equities "suggests that there could be some
consolidation ahead, as U.S. automatic spending cuts looks set to
kick in," said Crédit Agricole strategist Gary Yau.
Data out Friday on Chinese manufacturing showed that growth in
the sector's activity slowed almost to a halt in February,
according to an official survey.
The China Federation of Logistics & Purchasing's version of
the manufacturing Purchasing Managers' Index (PMI) fell to 50.1
from the previous month's 50.4, missing expectations for a rise to
50.5.
The final version of a separate, private survey, put out by
HSBC, was released later in the session and showed a decline to
50.4, unchanged from a preliminary version of the gauge released
earlier in the week.
Resource-sector firms were weak in mainland Chinese trading,
with Jiangxi Copper Co. (JIXAY) down 1.2% and Angang Steel Co.
(ANGGY) lower by 0.8%.
Energy firms were lower in Hong Kong, with Cnooc Ltd. (CEO) down
1.1% and PetroChina Ltd. (PTR) moving lower by 1.1%. China Coal
Energy Co. (CCOZY) also declined 1.1%.
The volatile property sector likewise lost ground, with Hang
Lung Properties Ltd (HLPPY) down 2% and Sun Hung Kai Properties
Ltd. (SUHJY) lower by 1.8%.
In Japanese trading, some exporters paused after recent gains as
the dollar (USDJPY) traded at Yen92.59, down fractionally from
Yen92.63 in late North American trading on Thursday.
Toyota Motor Corp. (TM) lost 0.9%, Panasonic Corp. (PC) dropped
1.2%, and Mitsubishi Motors Corp. (MMTOY) traded lower by 1%.
Still, some other top names advanced, with Sharp Corp. (SHCAF)
up 1.7% after a Kyodo News report Thursday saying the electronics
firm would soon accept executives from two major banks to secure
their financial support. Read: Sharp to accept executives from
banks
Tokyo Electric Power Co. (9501.TO) rallied 1.9% after a Nikkei
News report that the firm was ordering more than 10 billion yen
($108 million) worth of supplies and equipment to use for
decommissioning reactors at its Fukishima plant destroyed in the
2011 nuclear disaster.
Kobe Steel Ltd. (KBSTY) which was reportedly supplying the
material, traded flat.
Gold futures fell for a second straight session in New York on
Thursday, ending February with a fifth straight monthly loss,
helping send gold producers lower in Australia. Read: Gold drops,
notches 5th straight monthly loss
Newcrest Mining Ltd. (NCMGF) moved down 2.2%, Perseus Mining
Ltd. (PMNXF) tumbled 5.6% and OceanaGold Corp. declined 1.7%.
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