By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asian stock markets traded mostly lower
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 and the Shanghai Composite Index
each lost 0.5%, while New Zealand's NZSX 50 retreated 0.1%, and
Australia's S&P/ASX 200 index lost 0.5%.
Japan's Nikkei Stock Average managed to buck the lower trend,
trading up 0.4%, while South Korean markets were closed for a
holiday.
Asian stocks surged Thursday, the last session of February, but
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 didn't do much to lift
the market mood, showing 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. Read: China manufacturing grows marginally,
surveys show
Resource-sector firms were weak in mainland Chinese trading,
with Jiangxi Copper Co. (JIXAY) down 2.3% and Angang Steel Co.
(ANGGY) lower by 1.1%.
Energy firms were lower in Hong Kong, with Cnooc Ltd. (CEO) down
2.2% and PetroChina Ltd. (PTR) moving lower by 0.8%. China Coal
Energy Co. (CCOZY) declined 1.4%.
The volatile property sector likewise lost ground, with Hang
Lung Properties Ltd (HLPPY) down 2.5%.
Sun Hung Kai Properties Ltd. (SUHJY) fell 1.9% after cutting its
fiscal-year property sales target to 32 billion Hong Kong dollars
($4.1 billion), and reporting a 1.9% decline in first-half
underlying net profit.
In Japanese trading, the market pulled off early lows as the
dollar started to make up some ground against the yen (USDJPY),
trading at Yen92.66, up slightly from Yen92.63 in late North
American trading Thursday but well above the greenback's Yen92.18
level a day earlier.
Toyota Motor Corp. (TM) lost 0.5%, Panasonic Corp. (PC) dropped
0.9%, and Mitsubishi Motors Corp. (MMTOY) traded lower by 1%. But
Nissan Motor Co. (NSANY) rose 0.9% and Sony Corp. (SNE) gained
0.6%.
Sharp Corp. (SHCAF) rose 2% 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 2.4% 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, fell 0.8%.
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 2.3%, Perseus Mining
Ltd. (PMNXF) tumbled 5% and OceanaGold Corp. declined 0.4%.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires