Asian shares mixed after more weak China data

An investor gestures in front of the stock price monitor at a private securities company in Shanghai, China, Wednesday, July 24, 2013. Asian stock markets were mostly lower Wednesday after a survey showed Chinese manufacturing fell to its lowest point in nearly a year. (AP Photo)

HONG KONG—Asian shares were mixed on Wednesday following data showing that Chinese manufacturing activity shrank further in July, adding to mounting concerns about the world’s second-biggest economy.

Profit-takers also weighed on bourses following the previous day’s regional rally, although the Dow provided another record-breaking lead.

Tokyo slipped 0.32 percent, or 47.23 points, to 14,731.28 and Shanghai was down 0.52 percent, or 10.55 points, at 2,033.33. Hong Kong added 0.24 percent, or 53.51 points, to 21,968.93.

But Sydney rose 0.36 percent, or 18.0 points, to 5,035.1 and Seoul finished 0.42 percent higher, adding 7.93 points to 1,912.08.

HSBC’s preliminary Purchasing Managers’ Index (PMI) of Chinese manufacturing activity fell to 47.7 in July—an 11-month low—from a final reading of 48.2 in June.

A figure above 50 points to growth while anything below shows a contraction.

“The lower reading of the July HSBC Flash China Manufacturing PMI suggests a continuous slowdown in manufacturing sectors thanks to weaker new orders and faster destocking,” HSBC economist Qu Hongbin said in a statement.

The result is the latest in a series of data suggesting previous double-digit growth rates in China are a thing of the past as Beijing looks to shift its growth engine from exports to domestic consumption.

Shanghai at one point tumbled more than one percent but it pared those losses toward the end of the day.

The market had climbed almost two percent on Tuesday after a report that Premier Li Keqiang had said economic growth should not be allowed to fall below seven percent. The comments suggested the government would be willing to step in with support should the economy look to be in trouble.

HSBC’s Qu added: “As Beijing has recently stressed to secure the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilize growth.”

On Wall Street the Dow was up 0.14 percent to yet another record high, although the S&P 500 gave up 0.19 percent and the Nasdaq slid 0.59 percent.

US shares were hit by a mixed bag of corporate earnings, although a surprisingly downbeat manufacturing report reinforced expectations the Federal Reserve would hold off winding down its stimulus anytime soon.

In Asian forex trading the dollar bought 100.00 yen compared with 99.48 yen in New York late Tuesday, while the euro fetched $1.3237 and 132.39 yen, against $1.3222 and 131.53 yen.

In oil markets New York’s main contract, West Texas Intermediate for delivery in September, was up 17 cents at $107.40 a barrel and Brent North Sea crude for September delivery shed 22 cents to $108.20.

Gold cost $1,343.70 per ounce at 1100 GMT, compared with $1,328.50 late Tuesday.

In other markets:

— Bangkok lost 0.79 percent, or 11.95 points, to 1,501.36.

Thai Airways International added 3.14 percent to 23 baht, while department store operator Central Pattana fell 3.02 percent to 48.25 baht.

— Jakarta fell 1.03 percent, or 49.06 points, to 4,718.10.

Tin miner Timah fell 5.15 percent to 1,290 rupiah, while mobile phone provider Indosat gained 1.52 percent to 5,000 rupiah.

— Kuala Lumpur gained 0.26 percent, or 4.69 points, to 1,810.00.

YTL gained 0.6 percent to 1.66 ringgit, Genting added 1.8 percent to 10.02 and Public Bank rose 1.4 percent to 17.34.

— Manila rose 0.90 percent, or 60.95 points, to 6,804.16.

Top-traded Alliance Global Group rose 3.85 percent to 27 pesos while SM Investments Corp. gained 1.05 percent to 960 pesos.

— Mumbai slid 1.04 percent, or 211.45 points, to 20,090.68.

India’s private Yes Bank fell 12.63 percent to 383.35 rupees while state-run Bank of India fell 8.65 percent to 196.85.

— Singapore gained 0.65 percent, or 21 points, to 3,274.76.

Real estate developer Capitand gained 1.26 percent to Sg$3.21 and United Overseas Bank climbed 0.97 percent to Sg$21.98.

— Taipei dropped 0.22 percent, or 18.46 points, to 8,196.19.

Taiwan Semiconductor Manufacturing Co. put on 2.0 percent to Tw$102.0, while smartphone maker HTC fell 2.85 percent to Tw$170.5.

— Wellington rose 0.51 percent, or 18.61 points, to 4,599.20.

Telecom was up 0.86 percent at NZ$2.35 and Contact Energy rose 0.55 percent to NZ$5.50.