Shares in Asia mostly weaker as China manufacturing eases

Investing.com - Shares in Asia mostly fell on Monday after weak reports on Chinese manufacturing highligted growth worries, but also raised expectation of monetary easing by Beijing.

In China, the HSBC January manufacturing PMI us came in at 49.7, lower than the flash estimate of 49.8.

"Both new orders and new-export orders saw downward revisions but still signaled marginal expansion," said Hongbin Qu, chief economist, China and joint head of Asian economic research at HSBC. "We think demand in the manufacturing sector remains weak and more aggressive monetary and fiscal easing measures will be needed to prevent another sharp slowdown in growth."

At the weekend, China said January CFLP manufacturing PMI fell to 49.8 from 50.1 in December, placing it in contraction even as the timing of the Chinese New Year holiday this year relative to last should have boosted the January reading.

The Chinese reports came after fourth-quarter U.S. gross domestic product report on Friday that showed growth slowed sharply as weak business spending and a wider trade deficit offset a surge in consumer spending.

The Hang Seng index fell 0.45%, while the Shanghai Composite eased 1.59% and the Nikkei 225 gained slightly by 0.54%.

U.S. stocks were lower after the close on Friday, as losses in the Utilities, Consumer Goods and Technology sectors led shares lower.

At the close in New York, the Dow Jones Industrial Average fell 1.45%, while the S&P 500 index lost 1.30%, and the NASDAQ Composite index lost 1.03%.

In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market.

On Monday, in the euro zone, Spain is to release data on the change in the number of people employed.

The U.K. is to publish its manufacturing index.

In the U.S., the Institute of Supply Management is to release data on manufacturing activity. The country will also produce a report on personal income and spending.