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Hong Kong - Asian markets were broadly lower in early trade Thursday, tracking a negative session on Wall Street as investors eyed China manufacturing data which showed the economy losing strength.
HSBC's preliminary reading for its purchasing managers' index (PMI), which tracks manufacturing activity in China's factories and workshops, contracted in February to its lowest level in seven months.
The index, a closely-watched gauge of the health of the Asian economic powerhouse, also triggered selling on Asian bourses when it tumbled in January, showing a contraction for the first time in six months.
Tokyo shares were down 1.68% by the break after data showed Japan logged its worst-ever trade deficit in January, while Hong Kong's Hang Seng opened down 0.3% and Seoul fell 0.5%.
Sydney was up a modest 0.2% and Shanghai gained 1.20% at the start of the session after state media said insurance firms would be allowed to invest more in the stock market.
US stocks finished lower Wednesday after news that the latest US Federal Reserve meeting showed some policymakers sought an early hike in the Fed's benchmark interest rate.
The Dow Jones Industrial Average fell 0.56% to 16 041. The broad-based S&P 500 slumped 12.01 (0.65%) to 1 829, while the Nasdaq Composite Index lost 34.83 (0.82%) at 4 238.
The lower Tokyo opening came after finance ministry data showed Japan's trade deficit expanded 70.8% on-year to a record $27.3bn in January.
"Stocks still have room to retrace after Tuesday's big run-up, while the IMF announcement has rekindled jitters about emerging markets," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
Nishi was referring to a report Wednesday from the International Monetary Fund which called for the Group of 20 (G20) to boost growth, warning of risks to the global economy including deflation in Europe and volatility in emerging economies.
"The recovery has been disappointing, with G20 output still below longer-term trend," the IMF said ahead of a meeting of G20 finance ministers and central bankers in Sydney this weekend.
"Joint action is needed to boost output and to lower global risks substantially through more balanced growth."
Currency rates were barely changed after the Japanese trade data.
The dollar was at ¥102.25 early Thursday after ¥102.31 in New York Wednesday afternoon. The euro bought $1.3729 and ¥140.40 compared with $1.3734 and ¥140.51 in US trade.
Oil was mixed in Asian trade. New York's main contract, US benchmark West Texas Intermediate (WTI) for March delivery, gained six cents to $103.37 while Brent North Sea crude eased 20 cents to $110.27 for its April delivery.
Gold fetched $1 309.97 an ounce at 02:30 GMT from $1 318.37 late Wednesday.
