Asia report: Weak China factory data sees markets finish mixed

Markets in Asia finished mixed on Thursday, after the release of some particularly low unofficial Caixin PMI data from China.

Japan’s Nikkei 225 finished 1.07% ahead at 19,860.03, as the yen retreated 0.32% against the greenback to JPY 111.14.

On the mainland, the Shanghai Composite lost 0.5% to close at 3,101.70, while the Shenzhen Composite fell 1.92% to 1,773.61.

Before markets opened, the People’s Bank set renminbi’s loose peg at its strongest level in seven months, to CNY 6.8090 against the greenback.

The onshore yuan is permitted to float 2% above and below the daily loose peg.

“The stronger yuan could be in China's best interest to promote yuan internationalization and attract more investment,” noted OANDA senior trader Stephen Innes.

Unofficial manufacturing PMI data from Caixin was released during the day, with factory activity falling to its lowest level in 11 months with a reading of 49.6.

That was well short of the 50.1 reading forecast.

South Korea’s Kospi was down 0.12% at 2,344.61, while Hong Kong’s Hang Seng Index was up 0.58% at 25,809.22.

Oil prices were higher in Asian trading, though they were mixed in early European hours.

Brent crude was last down 0.08% at $50.72 per barrel, while West Texas Intermediate was ahead 0.17% at $48.40.

Australia’s S&P/ASX 200 added 0.24% to 5,738.13, while New Zealand’s S&P/NZX 50 was up 0.4% at 7,540.90.

The Wellington index was led higher by Air New Zealand, with the airline rising 5.2% to trade at NZD 3.02 - its highest level since before a government bailout in 2001.

Both of the down under dollars were weaker on the greenback, with the Aussie losing 0.42% to AUD 1.3514 and the Kiwi retreating 0.11% to NZD 1.4134.