ASIA MARKETS: Asia Stocks Weak After China Data, But Japan Rises

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%.

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