Asia report: Markets mixed as China PMI meets expectations

Markets in Asia finished mixed on Friday, as fresh data out of China arrived in line with expectations and the World Health Organisation declared the Wuhan coronavirus outbreak a global health emergency.

In Japan, the Nikkei 225 was up 0.99% at 23,205.18, as the yen was unchanged against the dollar, last trading at JPY 108.96.

Of the major components on the benchmark, automation specialist Fanuc was up 0.92% and fashion firm Fast Retailing added 1.19%, while technology conglomerate SoftBank Group slipped 0.55%.

The broader Topix index ended its session in the green, rising 0.58% to close at 1,684.44.

Markets on the mainland remained closed for the Lunar New Year holiday, which authorities in Beijing have extended in a bid to get a handle on the coronavirus outbreak.

Fresh data was still released out of China, however, with the country’s manufacturing activity unchanged on a month-on-month basis in January.

The official manufacturing purchasing managers’ index came in at 50, which was in line with the expectations of economists polled by Reuters.

Economists were wary that the figure could fall through the floor in February, however, given the potential impact of the coronavirus outbreak and the ensuing extended holiday on the country’s economic activity.

Spreadex analyst Connor Campbell pointed to the fact that losses early in the European day were not heavy, given the World Health Organisation’s declaration overnight that the coronavirus was now a global health emergency.

He said said sentiment had been "lifted somewhat by a better-than-forecast Chinese services PMI,” which rose to 54.1 in from 53.5 in December.

South Korea’s Kospi was down 1.35% at 2,119.01, while the Hang Seng Index in Hong Kong was off 0.52% at 26,312.63.

Both of the blue-chip technology stocks were in the red in Seoul, with Samsung Electronics down 1.4% and SK Hynix off 0.53%.

Oil prices were higher as the region went to bed, with Brent crude last up 0.61% at $58.65 per barrel, and West Texas Intermediate ahead 0.67% at $52.49.

In Australia, the S&P/ASX 200 was up 0.13% at 7,017.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.44% at 11,717.44.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.44% at AUD 1.4944 and the Kiwi retreating 0.51% to NZD 1.5485.