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Hong Kong - Asian markets mostly fell on Thursday, with downbeat Chinese manufacturing data dragging down Hong Kong and Shanghai as concerns grew about the pace of recovery in the world's second-largest economy.
But Tokyo bucked the trend, gaining 131.75 points to 15 586.20 after US Federal Reserve minutes suggested interest rates may be hiked sooner than expected.
Seoul dropped 28.57 points to 2 044.21, Hong Kong lost 165.66 points to 24 994.1, Shanghai slid 9.75 points to 2 230.46 while Sydney ended flat, edging up 4.3 points to 5 638.9.
Traders were focused on China as the HSBC preliminary purchasing managers index (PMI), which tracks activity in the country's factories and workshops, slipped to 50.3 in August.
The figure was down from a final reading of 51.7 in July and was the lowest for three months, the British banking giant said in a statement.
The indicator is a closely watched gauge of the health of the Asian economic powerhouse, with a reading above 50 indicating the sector is expanding.
"Today's data suggest that the economic recovery is still continuing but its momentum has slowed again," HSBC economist Qu Hongbin said in the statement.
The downward trend in Asian markets came despite a positive lead from Wall Street, where the Dow Jones Industrial Average closed up 0.35% at 16 979.13 points on Wednesday.
Early rate hike?
Minutes from the July 29-30 Fed meeting showed policy makers increasingly at odds over how strong the US labour market is and what that means for inflation, a key issue in planning rate hikes next year.
The intensifying debate signalled an increased, albeit still measured, level of hawkish sentiment in the Fed that could speed up any rate hike.
Easing fears about the geopolitical crisis in Ukraine has fuelled investor optimism ahead of a speech by the head of the US Federal Reserve.
Slow growth, low interest rates and tepid inflation on both sides of the Atlantic will be in focus when heads of the US and European central banks meet this week in Jackson Hole, Wyoming.
All eyes will focus on Janet Yellen, the Federal Reserve chair, and Mario Draghi, her counterpart at the European Central Bank, with observers looking and listening for signs of what they plan for interest rates.
Yellen is facing calls to begin raising interest rates soon after US measures aimed at stimulating the world's biggest economy are wound up in October.
In forex markets, the dollar was at ¥103.86 in afternoon Asian trade, up from ¥103.76 in New York late on Wednesday.
The euro fetched $1.3244 and ¥137.55 against $1.3258 and ¥137.57 in US trade.
In oil markets, US benchmark West Texas Intermediate for October delivery was down 27 cents at $93.18 while Brent for October eased 26 cents to $102.02 in afternoon trade.
Gold traded at $1 282.27 an ounce at 12:45 compared to $1 294.76 an ounce late on Wednesday.
In other markets:
- Mumbai eased 45.82 points to end at 26 360.11 points. Bhushan Steel fell 4.97% to 130.85 rupees, while Amara Raja Batteries fell 4.38% to 571.00 rupees.
- Bangkok rose 0.64 points, to 1 551.41. Telecoms company True Corp lost 4.55% to 10.50 baht while power giant Electricity Generating Public Co gained 4.75% to 165.50 baht.
- Jakarta ended up 15.97 points at 5 206.14, with lender Bank Negara Indonesia gaining 1.89% to 5 400 rupiah, while palm oil firm Astra Agro Lestari slipped 0.66% to 26 175 rupiah.
- Kuala Lumpur lost 4.08 points to close at 1 874.81. Malayan Banking fell 0.2% to 10.06 ringgit, while plantation giant Sime Darby shed 0.2% to 9.48. SapuraKencana Petroleum added 1.5% to 4.19 ringgit.
- Singapore rose 0.44 points to 3 324.09 as United Overseas Bank and Singapore Airlines slipped 0.04% to Sg$22.86 and 0.40% to Sg$10.00 respectively.
- Wellington rose 12.58 points to 5 152.92. Air New Zealand was up 0.71% at NZ$2.13 and Spark lifting 0.34% to NZ$2.91.
- Taipei fell 34.67 points to 9 253.38. HTC fell 1.55% to Tw$127.0 while TSMC was 0.8% lower at Tw$124.5.
