The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research

Asian stocks mixed ahead of U.S. spending cuts

Asian stocks were mixed today as S&P 500 futures reversed an early gain ahead of US$85Bn in automatic government spending cuts due to start kicking in tomorrow (unless a last minute compromise is reached).

The Nikkei-225 index reversed an early loss after a report showed Japan's consumer prices dropped for the eighth time in nine months, boosting speculation that the incoming Bank of Japan governor will expand monetary stimulus. The yen dropped against most peers.

Elsewhere in the region, the Shanghai Composite fell 0.6% as HSBC and China's government both said their respective gauges of Chinese manufacturing activity, in a final reading, indicated growth slowed in February. The official manufacturing PMI hit the lowest level in five months. HSBC said its gauge signalled a "slower pace of expansion" over the month, but that "China's recovery continues on improving domestic demand conditions and the labour market."

To read today's report in PDF in full, see link at the top of this story.

(For a more comprehensive summary of last night's market action see FNArena's Overnight Report.)

Analyst Certification: Any views expressed in this research report by Seismic Research Solutions Pty Ltd ('Seismic Research') accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The analyst principally responsible for the preparation of this research report receives compensation based on overall revenues of Seismic Research and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations.

Disclaimer: This document is intended solely for informational purposes and solely for the particular person to whom it was provided by Seismic Research Solutions Pty Ltd ('Seismic Research', ABN: 96 143 340 194). This document should not be relied upon by any other person. All statements contained herein are subject to change without notice. This document is not an offer to buy or sell any financial instruments. This document contains general advice only. In preparing this document, Seismic Research has not taken into account any recipient's investment objectives, financial situation or particular needs of the reader. Seismic Research is not acting as advisor or fiduciary in providing this document, the reader should not make an investment decision on the basis of this document. Although we believe that the information this document contains is accurate and reliable, Seismic Research has not independently verified the information contained in this document, which is derived from publicly available sources. Seismic Research is an Authorised Representative of an Australian Financial Services Licence holder (AFSL: 338 943). Authorised Representative number: 389 109.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided.

FN Arena is building the future of financial news reporting at www.fnarena.com . Our daily news reports can be trialed at no cost and with no obligations. Simply sign up and get a feel for what we are trying to achieve.

Subscribers and trialists should read our terms and conditions, available on the website.

All material published by FN Arena is the copyright of the publisher, unless otherwise stated. Reproduction in whole or in part is not permitted without written permission of the publisher.