Volatile HSI Edges Up, Asian Markets Mostly Down

Hong Kong stocks headed into Thursday's break with gains after fluctuating through the morning as data showed a further contraction in Chinese factory activity in February.

The Hang Seng Index added 0.1 percent, to 28,785 by the break.

On the mainland, the Shanghai Composite Index eased 0.4 percent, to 2,943, while the Shenzhen Composite Index edged up 0.2 percent, to 1,543.

Tokyo went into the break 0.4 percent lower, but Sydney put on 0.2 percent and Wellington was up 0. 4 percent.

Singapore slipped 0.5 percent and Seoul shed 0.2 percent, while Jakarta retreated 0.5 percent and Manila lost 0.7 percent.

Zhou Hao, a senior emerging markets economist at Commerzbank AG, said the mainland factory data were likely not as bad as they seemed and the outlook could be positive.

"I think we still want to wait for the next month's reading as this month's is distorted by the holiday," he said.

"Also the economy could stabilise this month. Rising input prices suggest that there is no need to worry about deflation, so the question now rests on whether the economy has enough impetus." (AFP)

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