All the Asian equity indices, barring Jakarta Composite, are trading lower in early deals on Thursday as sentiments remained dampened after activity in China’s factory sector contracted in January for the first time in six months, pointing to a weak start for the economy in 2014 as policymakers seek to curb high debt levels to head off financial risks. The flash Markit/HSBC Purchasing Managers’ Index (PM) fell to 49.6 in January from December’s final reading of 50.5, dropping below the 50 line, which separates expansion of activity from contraction. Among other markets in the Asia-Pacific region, Malaysia, South Korea, Hong Kong, Taiwan, Japan and Singapore are trading weak, while Indonesia is trading notably higher.
Shanghai Composite slipped 10.48 points or 0.51% to 2,041.27, Hang Seng declined 315.98 points or 1.37% to 22,766.27, KLSE Composite shed 3.44 points or 0.19% to 1,810.66, Nikkei 225 dipped 7.28 points or 0.05% to 15,813.68, Straits Times decreased 19.41 points or 0.62% to 3,114.33, Seoul Composite contracted 19.56 points or 0.99% to 1,950.86 and Taiwan Weighted was down by 22.01 points or 0.26% to 8,603.29.
On the flip side, Jakarta Composite was up by 10.94 points or 0.24% to 4,488.43.