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Hong Kong - Asian markets were mixed on Thursday despite positive cues from Wall Street as traders digested a slew of soft data including a weaker-than-expected report on retail sales in the world's largest economy.
Investors were also focused in late trade on eurozone growth data, with recovery in the crisis-battered region appearing to stall in the second quarter, as the main growth engines, France and Germany, ground to a standstill.
Tokyo closed up 0.66% to 15 314.57, Sydney gained 0.61% to 5 548.5 while Hong Kong lost 0.36% to 24 801.36 and Shanghai dropped 0.74% to 2 206.47.
Seoul ended flat, edging up 0.86 points to 2 063.22 after South Korea's central bank cut interest rates for the first time in 15 months, under growing government pressure including warnings of recession from the new finance minister.
The mixed performance came despite a strong lead from Wall Street, where the Dow Jones Industrial Average on Wednesday finished up 0.55% at 16 651.80, with investors discounting a lacklustre US retail sales report.
Retail sales were virtually unchanged in July from the prior month and, excluding the automobile sector, edged up just 0.1%, the Commerce Department said.
The report was weaker than analysts expected, and highlighted the fragile state of the US economy where wage growth is minimal and unemployment, though easing, remains high.
Investors in Asia were also still digesting other disappointing regional data posted on Wednesday.
Statistics showed Japan's economy suffered its biggest quarterly contraction since the 2011 quake and tsunami, while in China industrial output and retail sales numbers came in slightly slower in July than the previous month's data.
Adding to the downbeat sentiment, eurozone growth data revealed that Germany's economy - Europe's biggest - shrank in the second quarter
Germany's gross domestic product shrank by 0.2% in the period from April to June, following growth of 0.7% in the preceding three months, data showed on Thursday.
And the region's number two economy, France, showed zero growth for the second consecutive quarter.
The tepid data sparked some speculation among investors about fresh prospects of stimulus from major central banks.
On Thursday, the Bank of Korea cut its benchmark rate by 25 basis points to 2.25%. It was the first rate cut since May 2013.
The move came after the finance ministry last month unveiled a $40bn stimulus package and revised its 2014 economic growth forecast down from 4.1% to 3.7%.
At the time, Finance Minister Choi Kyung-Hwan warned that the national economy stood at a crossroads between "making a leap forward and falling into a recession".
In forex markets, the dollar was at ¥102.57 in afternoon Asian trade on Thursday compared with ¥102.43 in New York late on Wednesday.
The euro bought $1.3361 and ¥137.07 against $1.3363 and ¥136.89 in US trade.
And in oil markets, US benchmark West Texas Intermediate for September delivery eased 44 cents to $97.15, while Brent crude for September shed 48c to $103.80 in afternoon trade.
Gold traded at $1 310.00 an ounce at 12:50 compared to $1 307.33 an ounce late Wednesday.
In other markets:
- Mumbai advanced 0.71% to end at 26 103.23.
JSW Steel climbed 8.65% to 1 274.75 rupees, while Indiabulls Real Estate rose 5.57% to 70.10 rupees.
- Bangkok lost 0.17% to 1 541.97.
Telecoms company True Corporation lost 2.88% to 10.10 baht, while Airports of Thailand fell 2.28% to 214.00 baht.
- Jakarta ended down 0.25% at 5 155.55.
Bank Permata lost 0.36% at 1 375 rupiah, while Indo-Rama Synthetics climbed 11.11% to 1 000 rupiah.
- Kuala Lumpur rose 0.19% to close at 1 861.58.
Axiata Group rose 0.3% to 6.97 ringgit, while Public Bank gained 0.5% to 19.12. SapuraKencana Petroleum fell 0.2% to 4.18 ringgit
- Singapore eased 0.20% to 3 294.83.
Vehicle distributor Jardine Cycle & Carriage was down 0.49% to Sg$44.68 while Singapore Airlines eased 0.71% to Sg$9.76.
- Manila jumped 1.07% to 7 061.00.
Top-traded Philippine Long Distance Telephone Co gained 4.03% to 3 250.00 pesos while Ayala Land gained 0.95% to 32 pesos.
- Taipei ended flat, edging down 0.7 points to 9 230.61.
TSMC rose 1.22% to Tw$124.0 while Acer fell 1.0% to Tw$24.8.
- Wellington rose 0.15% to 5 062.41.
Spark gained 1.42% to NZ$2.85 while Chorus was steady at NZ$1.71.
