Asia: Buyers shy away despite upbeat Chinese data

LONDON (ShareCast) - Asian stock markets struggled get off the ground on Wednesday as upbeat Chinese manufacturing surveys failed to overshadow disappointing US data and a weak close on Wall Street. The weaker than expected US manufacturing, housing and business confidence data took markets by surprise, particularly after stronger than expected reports in recent months. Chinese manufacturing data was also in focus. China's official PMI enjoyed a gentle expansion in January, despite forecasts of a contraction. The report boosted sentiment that the world's second largest economy will manage a soft landing. A rise in new orders helped Chinese PMI rise to 50.5 in January from 50.3 in December, confounding expectations of a decline to 49.5. A figure above 50 indicates expansion. A separate HSBC (LSE: HSBA.L - news) survey the Chinese manufacturing sector contracted by the smallest amount in three months, a further indication that the nation's economy may avoid a hard landing. The benchmark Nikkei 225 (Osaka: ^N225 - news) index closed up 7 points at 8,810 in Tokyo. The Hang Seng finished 57 points in the red at 20,333. Stocks on the move included Daiwa Securities and Shinsei Bank (Munich: 853140 - news) which both fell after their results, posted after the bell on Tuesday, disappointed. The banking sector was mixed however as Mitsubishi UFJ Financial jumped 3% and Sumitomo Mitsui added 3.4% in Tokyo. Hong Kong real estate came under pressure on reports that the government will increase land supply. Shares of Sino Land (HKSE: 0083.HK - news) fell 3.5% and Cheung Kong (HKSE: 0001.HK - news) surrendered 1%.