Asia: Stocks lower after economic data disappoints
Asian stocks ended the week lower on the back of declines in the US market after worse-than-expected economic data and in the aftermath of Wednesday's US Federal Reserve policy meeting .
HSBC's Chinese manufacturing purchasing managers' index for manufacturing on Friday was revised lower to 51.7 in July from 52. Analysts had expected it to remain unchanged. A reading above 50 signals expansion.
US initial weekly unemployment claims rose by 23,000 in the week ended 26 July to 302,000, according to the US Department of Labor on Thursday. The consensus estimate had been for a reading of 300,000. The previous week's estimate was revised sharply lower to 279,000.
The report came ahead of Friday's official government monthly jobs data which will be closely watched by the market.
The US Labor Department's report is expected to show employers added 230,000 jobs in July, less than the 288,000 jobs in June. The unemployment rate is forecast to hold at 6.1%.
The Federal Reserve is monitoring jobs data to gauge whether the economy is healthy enough to sustain an interest rate hike.
The central bank on Wednesday decided to keep interest rates unchanged after its two-day policy meeting, saying while the jobs market has improved it still has room to grow. The Fed also cut monthly bond purchases by a further $10bn.
The Nikkei 225 declined 0.63% while the Hang Seng index fell 0.91% and Shanghai Composite dropped 0.74%.
Also weighing on Asian stocks were earnings and credit-market concerns.
Argentina missed a deadline on Wednesday to pay $539m in interest after failing to produce an accord with creditors following two days of negotiations in New York.
On the earnings front, Skymark Airlines retreated after Japan's third-largest carrier said it may go out of business if it must pay Airbus Group NV a penalty for cancelling the purchase of six A380 superjumbos.
Cheung Kong Holdings dropped in Hong Kong after the property developer reported first half profits that fell short of forecasts.
Samsung Electronics declined in Seoul after UBS cut its rating on the stock.
RD