Southeast Asian stocks gave up most of their early gains on Thursday, with Singapore and Thailand falling into red, after data showed China's factory activity shrank for a fifth straight month. The weak PMI survey added to recent concerns about a slowdown in the world's second-largest economy and the risks it poses to still sluggish global growth. The euro zone's economy also took an unexpected turn for the worse in March.
The MSCI Asia Pacific ex-Japan index was trading down 0.21 percent by 0941 GMT from a 0.6 percent gain prior to the Chinese data release, with China-related shares and regional blue chips with significant China earnings among the hardest hit. Singapore's Straits Times Index shed 0.9 percent, with Chinese firm rig-maker Yangzijiang sliding 2.2 percent and China Aviation Oil falling 0.4 percent. Late selling also sent Thai stocks lower, with the benchmark SET index ending down 1.4 percent.
Jakarta's Composite Index was up 0.13 percent, while Malaysia's main index ended up 0.04 percent, both off early highs. Indonesia's stock market is shut on Friday for market holiday and will reopen on Monday. The Philippine index edged up 0.11 percent amid bargain hunting in recently beaten down telecoms shares, with Globe Telecom Inc up almost 1 percent after Wednesday's 1.6 percent fall as its high valuations prompted downgrade. In Bangkok, top industrial conglomerate Siam Cement Pcl fell 0.56 percent, after climbing 1.7 percent at one point. In Jakarta, PT Indocement Tunggal Prakarsa, Indonesia's No 2 cement maker, rose 0.3 percent.