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Data Support for China; Tokyo Slips

Chinese markets were among the few gainers in Asia Tuesday after the official gauge of China's manufacturing activity saw a small improvement in March.

The Nikkei slipped 0.2%. The Shanghai Composite was up 0.7% while the Hang Seng gained 1.3%. The Sensex moved up 0.3% and the All Ordinaries slipped 0.1%.

China's official manufacturing PMI rose to 50.3 from 50.2 in February.

The privately compiled manufacturing PMI by HSBC showed a decline in activity with the index falling to a reading of 48 from 48.5, marking the third straight month of decline.

The Shanghai Composite slipped to a marginal 0.1% loss after HSBC’s version was released but recovered quickly.

Japanese markets were weighed by the Bank of Japan's closely watched tankan survey on manufacturing which rose less-than-expected in the last quarter. The data was released Monday after the market close. The BoJ said the manufacturing index rose to a seasonally adjusted 17 from 16 in the last quarter. However, the recovery was slower than expected with the median estimate calling for a reading of 18.

In Australia, as was widely expected, the Reserve Bank kept its benchmark cash rate at a record low 2.5%.

India’s Reserve Bank also held rates steady with the policy repurchase rate at 8%. Stocks and the Indian rupee both showed little change after the rate decision.

Crude oil prices were lower.

Stocks on the Move

Retailers were weaker in Tokyo with the country's first consumption-tax hike in 17 years going into effect today.

Aeon ended down 1.4% and J. Front Retailing 1% lower. Seven & i Holdings declined 0.7% while FamilyMart Co. and Takashimaya fell 2.2% and 2.1% each, respectively.

Tokyo Electric Power was down 2.6%. The utility said it would lay off 1,000 jobs by June but also said it wouldn’t raise rates this year, according to a Bloomberg news report.

Nikon edged up 0.1% despite a Nikkei report the company is set to miss its full-year operating-profit forecast.

CAPCOM Co. dropped 7.5% after the company slashed full-year profit forecast.

Mitsubishi UFJ Financial, Sumitomo Mitsui, and Mizuho were all higher, again possibly on the back of another Nikkei report saying the three megabanks are set to post record profits.

Index heavyweight Sony was up 2% while Panasonic gained 2.4%. Bellwether Toyota slipped 0.2%.

In Hong Kong, CNOOC climbed half a percent despite a broker downgrade.

Casino stocks, as usual, gained before their results announcements. Galaxy Entertainment was up 7.9% while Wynn Macau zoomed 9.3%. MGM China added 7% and SANDS CHINA advanced 9.6%.

Stocks were little changed in Mumbai after the Reserve Bank’s policy decision to stick to its existing rates.

The Sensex was marginally higher, hitting a record lifetime high for the seventh straight session.

Top gainers were Wipro, up 3.3%, and SLLT, up 2.1%. TCS also rose 2.1% while Tata Steel strengthened 1.9%.

M&M and Dr. Reddy’s were up 1.8% and 1.6% each, respectively.

In Sydney, a sharp gain in spot iron-ore prices boosted some miners and Fortescue Metals added 1.1%. Rio Tinto was up half a percent.