China stocks lead losses in Asia as manufacturing slows; Singapore annual GDP growth rises to 4%

Asian stocks traded mixed Thursday, with China stocks leading losses as several major markets resumed trading after New Year's Day holiday.

China's Caixin/S&P Global manufacturing purchasing managers' index for December fell to 50.5, missing economists' forecast of 51.7 in a Reuters poll. PMI came in at 51.5 in November and 50.3 in October.

The fall in the PMI figure indicates the "pace of growth [had] eased since November and was marginal overall," the report said.

"Exports dragged on demand amid mounting uncertainties stemming from the overseas economic environment and global trade," said Wang Zhe, senior economist at Caixin Insight Group.

The official PMI for December, released Tuesday, came in at 50.1 and missed expectations.

Mainland China's benchmark CSI 300 dipped over 3% lower before narrowing the losses to 2.91%, ending at 3,820.39. The broad market slump on its first trading day in 2025 came despite President Xi Jinping's vow during his New Year address on Tuesday evening to implement more proactive policies to support economic growth.

The offshore yuan strengthened by 0.14% to trade at 7.3224 against the dollar, regaining some ground after notching its weakest level since 2022 October on Tuesday.

Hong Kong's Hang Seng Index lost 2.37% in the final hour of trade. Shares of Sun Art Retail Group plunged over 23%, a day after Chinese e-commerce giant Alibaba Group announced to sell its majority stake in the hypermarket chain. Alibaba was down over 1%.

South Korea's Kospi index inched lower to close at 2,398.94 while the Kosdaq added 1.24% to 686.63. The markets opened one hour later than usual, due to an opening ceremony for the new year.

Rhee Chang-yong, the country's central bank governor, said in a New Year's speech