Asian Shares End Mixed; China Lower on Data -- Update

By Chao Deng 

Asian stocks finished mixed Thursday, with China shares falling after data showed Chinese manufacturing activity down at a three-month low.

The Hang Seng closed off by 0.7% to 24,994.10, after HSBC reported that its flash China manufacturing Purchasing managers index fell to 50.3 in August, from 51.7 in July. The data follows a string of disappointing economic data from China, Europe and the U.S. recently. On the mainland, the Shanghai Composite Index was down 0.4%.

Expectations for continued low interest rates in the U.S., however, buoyed market sentiment in the region. The Nikkei was up 0.9% to 15586.20 Thursday, now its ninth straight day winning streak, amid a stronger dollar. The dollar was last at Yen103.85, compared with Yen103.71 late Wednesday in New York, aiding Japanese exporters.

The dollar-yen pair rose as the U.S. Federal Reserve appeared to be shifting to a more hawkish stance. Minutes by the U.S. central bank indicated that while policy makers talked about a sooner-than-anticipated increase in interest rates, they decided to put off raising rates in favor of more evidence of an economic improvement. Investors are looking next to Fed Chairwoman Janet Yellen's speech on Friday.

Australia's S&P/ASX 200 finished almost flat at 5638.9, as the domestic earnings season rolled on and as banks and miners pared intraday gains following disappointing China manufacturing data. Treasury Wine Estates shares fell after the company reported operating earnings of A$184.6 million, a figure at the bottom-end of its full-year guidance that potentially takes pressure off private-equity firms bidding for the vintner to raise their offers.

But, the index remains on track for 6000 by December amid low interest rates, a positive domestic-earnings outlook, still solid growth in China, and a strengthening U.S. economic recovery, according to Macquarie Private Wealth division director Martin Lakos. "We are still seeing a very accommodative U.S. monetary policy outlook, and leading economic indicators suggest U.S. corporate earnings growth will be stronger than expected," he said.

Elsewhere, South Korea's Kospi was down 1.4%. Hyundai Motor shares slipped because of concerns that a planned strike would disrupt production. A final decision on strike details is expected at a union meeting scheduled Thursday.

Singapore's Strait Times finished flat at 3322.23.

David Roger contributed to this article.

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