Asia: Chinese shares follow US lead lower

Asian markets fell on Friday, following Wall Street’s lead overnight, with losses across the region at the close of week's trading.

A fifth straight contraction in China’s manufacturing index at 48.2 was, a 15 month low, and a further example how China’s markets were faring.

However, the lacklustre reading could prompt Beijing to cut interest rates further in the second half of the year, which may boost the market, BOC International said.

The Shanghai Composite Index closed lower by 1.28% to 4,071, but has capped its third straight week of gains. It's close on Friday was 2.9% up across the week, and it has now gained almost 20% off recent lows.

Similarly, the smaller Shenzhen index was down 1.27% to 2,430.232, while Hong Kong’s Hang Seng was down 1.08% at 3,441.47.

Accendo Markets analyst Mike van Dulken said China’s woes were contagious around the region along with continually weak global commodities.

Over in Japan the Nikkei 225 was down 0.67% to 20,544.53, despite improvements in its domestic manufacturing sector. The Yen was at ¥ 124.03 against the dollar.

Company wise Shin-Etsu Chemical led gains, up 4.2% to ¥ 7575, after reporting strong results for April to June.

Down under Australia’s S&P ASX index was down 0.4%, led by losses in the mining sector.

DrillSearch Energy, law firm Slater & Gordon, Northern Star Resources and Evolution Mining led losses in the ASX, while foreign exchange firm OzForex was on top of the leaders climbing 4.13% to AU$2.27. Australia’s dollar was the weakest against the US dollar in six years.