ASIA MARKETS: Asia Stocks Slip Back After Big Rally

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%.

Sun Hung Kai Properties Ltd. (SUHJY) moved lower by 1.8% 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, 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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