Asia: Stocks mixed following weaker data from Japan and China

Asian markets had a mixed session on Tuesday following disappointing data from China and Japan.

Shanghai composite index was up 0.1% despite weaker data sparking concerns about economic activity in the world's second largest economy. China's purchasing managers' index (PMI) fell into contraction territory in March at 49.2, compared to 50.6 the month before.

Economists had forecast a reading of 50.6 and now expect further monetary stimulus from China.

In a note to clients, Capital Economics said: "Today's PMI reading is the latest in a string of disappointing data out of China and strengthens our view that the economy likely slowed sharply in Q1.

"Looking ahead, we expect the deceleration in growth to moderate in coming months as policymakers step up fiscal spending and carry out further cuts to the required reserve ratio and benchmark interest rates in order to prevent growth this year from slipping too far below their annual target."

Japan's Nikkei 225 was down 0.21% as the country's PMI hit its lowest level in 10 months at 50.4 in March from 51.6 the month before and against expectations of a 52.1 reading.

Elsewhere, Hong Kong's Hang Seng fell 0.39%. On a more positive note, Australia's ASX gained 0.22% helped by a stabilisation of commodities prices. Gold rose 0.3% to $1,187.70 an ounce while Brent futures rose 1% to $55.89 at the close of Asian trading.

CMC Markets analyst Jasper Lawler said: “Comments from the Saudi oil ministry initially sent crude oil lower but in a demonstration of strength, oil prices reversed and moved higher for the remainder of the session.”

Australian mining company BHP Billiton gained 0.57% while gold producer Newcrest Mining rose 2.61%.

In other corporate news, Japanese pharmaceutical company Eisai continued to rise by 9.4% following Monday's news that its Alzheimer experimental drug has shown progress.

In China, the second-largest property developer Poly Real Estate lost 3.16% and Founder Securities fell 2.31%.