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Hong Kong - Asian markets were mixed on Thursday after another round of weak manufacturing data underlined the slowdown in China's economy, while minutes from the US Federal Reserve's latest meeting gave few hints about its plans for interest rates.
Further losses in the yen to multi-year lows against the dollar and euro were not enough to give a strong boost to Tokyo's Nikkei after this week's surprise news that Japan had slipped into recession.
Tokyo ended flat, dipping 12.11 points to 17 300.86, Seoul fell 8.83 points to 1 958.04 and Sydney sank 52.6 points to 5 316.2.
Hong Kong lost 21.67 points to close at 23 349.64. Shanghai was flat, edging up 1.67 points to 2 452.66.
Preliminary figures from British banking giant HSBC on Thursday indicated manufacturing activity in China was stagnant in November. Its purchasing managers index (PMI) came in at 50. Anything above that points to growth, and a figure below suggests contraction.
The result compares with 50.4 in October, and is the latest data showing the world's number two economy and key driver of regional and global growth is struggling with soft exports and a weakening property sector.
However, it will likely raise hopes that Beijing will unveil a fresh stimulus as the impact of growth-inducing measures from earlier this year fades.
"We still see uncertainties in the months ahead from the property market and on the export front," HSBC economist Qu Hongbin said in a statement. "Growth still faces significant downward pressures."
Traders were given a tepid lead from Wall Street after the Fed's minutes shed little light on its plans for monetary policy.
Minutes from the US central bank's October 28-29 policy meeting showed policymakers were confident enough in the economy to bring an end to its vast bond-buying stimulus programme.
However, they also made clear there was little thought of departing from its current policy of keeping interest rates at the current zero level well into 2015. Most analysts forecast initial hikes in around the middle of next year.
Dollar approaches ¥119
In New York the Dow edged down 0.01% and the S&P 500 lost 0.15%, while the Nasdaq dropped 0.57%.
On currency markets the yen fell further against the dollar after Japan's central bank trimmed its inflation expectations and held off unveiling any more easing measures to boost the country's economy, despite it slipping into recession in July-September.
"The BoJ may be prepared to become even more aggressive to achieve its inflation target," Credit Agricole said in a note.
The dollar rose to ¥118.50 from ¥118.01 in New York, its highest level since August 2007. The euro bought ¥148.74 against ¥148.11 in US trade, its strongest since October 2008. The single currency was also at $1.2557 compared with $1.2551.
The yen has plunged this month after the Bank of Japan ramped up its own vast asset-purchasing scheme on October 31.
Traders were given a lift by news that Japan's trade deficit narrowed by more than a third year-on-year in October, helped by higher exports and lower oil prices, which reduced the country's massive energy bill.
Oil prices were higher. US benchmark West Texas Intermediate for December added two cents to $74.60 while Brent crude for January was up 1c at $78.11 in mid-morning trade.
Gold was at $1 195.791 an ounce, compared with $1 200.30 late on Wednesday.
In other markets:
- Mumbai advanced 34.71 points to end at 28 067.56. Pharmaceutical major Cipla rose 3.23% to 618.60 rupees, while Sesa Sterlite fell 2.33% to 234.65 rupees.
- Bangkok dropped 8.87 points to 1 568.68. Telecoms company Total Access Communication fell 3.47% to 97.50 baht, while Bangchak Petroleum slid 2.03% to 36.25 baht.
- Jakarta ended down 34.37 points at 5 093.57. Palm oil firm Astra Agro Lestari gained 3.34% to 24 775 rupiah, while auto maker Astra International dipped 3.85% to 6 875 rupiah.
- Kuala Lumpur fell 2.1 points to close at 1 822.290. RHB Capital fell 2.13% to 8.27 ringgit and Telekom Malaysia dropped 0.68% to 7.25.
- Singapore closed down 18.96 points to 3 315.60. DBS Bank fell 0.81% to Sg$19.56 while vehicle distributor Jardine Cycle & Carriage was down 1.51% to Sg$40.97.
- Taipei rose 115.63 points to 9 078.87. Taiwan Semiconductor Manufacturing gained 2.21% to Tw$139.0 while Hon Hai was 0.73% higher at Tw$96.7.
- Wellington ended marginally higher, adding 4.89 points to 5 526.95. Fletcher Building added 0.48% to NZ$8.44 and Chorus was up 1.46% at NZ$2.08.
- Manila was flat, dipping 0.54 points to 7 268.95. Ayala slid 4.88% to 682 pesos, while Philippine Long Distance Telephone gained 0.07% to 2 994 pesos.
