Asia report: Markets mixed as traders digest China data

In Japan, the Nikkei 225 was ahead 0.72% at 19,646.24, as the yen weakened 0.31% against the dollar to JPY 110.58.

Major exporting sectors, such as technology and carmakers, saw the biggest gains as a weaker yen made the country’s exports more attractive.

The can-Toshiba-sell-its-memory-chip-unit circus returned to the ring for another performance, this time with a consortium led by Bain Capital and including Apple and SK Hynix reportedly making a last-minute $18bn bid.

Toshiba reportedly failed to meet its own 31 August deadline to make a deal with an earlier consortium which involved Western Digital, with talks set to continue.

Shares in the technology conglomerate finished down 0.65%.

On the mainland, the Shanghai Composite lost 0.08% to 3,361.00, and the smaller, technology-heavy Shenzhen Composite was ahead 0.31% at 1,944.94.

Fresh official data out of Beijing showed the country’s manufacturing PMI improved to 51.7 in August, ahead of the 51.3 expected in a Reuters-polled forecast.

Its official services PMI fell to 53.4, however, from 54.5 month-on-month, taking it to the lowest reading since May 2016.

“If the data in September continues to be supportive, the growth outlook for China's second half could exceed market expectations for a slowdown,” noted ANZ Research senior China economist Betty Rui Wang.

South Korea’s Kospi finished down 0.38% at 2,363.19, while the Hang Seng Index in Hong Kong fell 0.44% to 27,970,30.

In Seoul, carmaker Kia Motors was off 3.54% after it was ordered to pay KRW 420bn in unpaid wages by a court.

The Bank of Korea stood pat on interest rates during the day, holding its official rate at 1.25% as widely expected by the markets.

Oil prices were sliding as gasoline futures in the US rose, with ex-Hurricane Harvey beginning to force the shutdown of some of the country’s major refineries.

They picked up again at the start of European trading, however, with Brent crude up 0.39% at $51.06 and West Texas Intermediate up 0.41% at $46.15.

In Australia, the S&P/ASX 200 tacked on 0.79% to 5,714.52, underpinned by broad strength across most sectors, as the hefty financials sector improved 0.71%.

Electronics and furnishing retail giant Harvey Norman tumbled 7.48% after it declared a smaller dividend for the year.

Its full-year profit was above estimates, however, at AUD 448.98m, against forecasts for AUD 414m.

Across the Tasman Sea in New Zealand, the S&P/NZX 50 rose 0.5% to 7.817.10, led higher by subscription broadcaster Sky - not related to its London-listed namesake - which was 2.9% firmer.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.18% at AUD 1.2673 and the Kiwi retreating 0.71% to NZD 1.3986.