Asian stocks were mostly lower as data signalled weakness in China's economy and as the Japanese yen strengthened.

A Markit/HSBC survey yesterday showed Chinese manufacturing fell to the lowest level since July, implying that the sector was shrinking in the world's second largest economy.

Earlier this week, China reported its slowest annual economic growth since 1999. Gross domestic product grew at an annual rate of 7.7% in the October to December period, down from 7.8% the previous quarter. However, it remained above the government's target rate of 7.5%.

The reports fuelled concerns of a slowdown in the nation as the government works to spur growth by introducing reforms and injecting funds into the financial sector.

Hong Kong's Hang Seng index dropped 1.25% at close today while the Shanghai Composite rose 0.60%.

Japan's Nikkei 225 declined 1.25% as the yen rose against the dollar by the most since September 18th, dragging exporters lower.

On the company front, The Reject Shop declined in Sydney after the discount retailer reported first-half profit that missed estimates.

Australian gold producer Newcrest Mining rose after the price of the yellow metal advanced in New York.

Lenovo Group rallied after agreeing to buy International Business Machines Corp.'s low-end server unit yesterday.

RD

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