Mainland stocks ended lower on the final trading day of March and saw their worst monthly loss since early 2022, as positive manufacturing data failed to ease investor caution ⁠over the Middle East conflict.

In Hong Kong, however, the benchmark Hang Seng Index ended up 37 points, or 0.15 percent, at 24,788. But the index was down 6.9 percent for March, making it the worst month since January ⁠2024.

The China enterprises index was down 24 points, or 0.3 percent at 8,374. The tech index was down 40 points, or 0.86 percent, at 4,649 to end the month down almost 10 percent.

Hong Kong-listed shares of Chinese banks outperformed, up 1.4 percent.

Up north, the benchmark Shanghai Composite Index ended down 31 points, or 0.8 percent, at 3,891. For the month, the Shanghai Composite is down 6.5 percent, marking its biggest monthly loss since January 2022.

The Shenzhen Component Index was 248 points, or 1.81 percent, lower at 13,478 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was 88 points, or 2.7 percent, down at 3,184.

The losses came as China released better-than-expected March ⁠manufacturing data, with official manufacturing purchasing managers' index rising to 50.4, above the 50-threshold and hitting the highest point ⁠in 12 months.

A ‌delayed Lunar New Year this year contributed to a stronger March PMI, Zhiwei Zhang, chief economist ‌at Pinpoint Asset Management said, adding that an outlook for the second quarter remained unclear ⁠for now.

"The market is increasingly worried about the risk of global growth slowdown and supply chain disruption," he said, adding a global growth slowdown would dampen China's exports.

Coal and semiconductor stocks led the decline in mainland shares, down 3.8 percent and 3.7 percent, respectively.

Despite the big monthly ‌drop, mainland and Hong Kong markets outperformed other major Asian markets in March.

Some analysts believe ‌the country is a relative safe haven given its low dependence on Gulf energy.

HSBC remained "overweight" on China shares in a note on Tuesday, adding that the ⁠market offers defensive qualities underpinned by a largely domestic investor base and a stable currency.

In Tokyo, the benchmark Nikkei 225 Index ended 822 points, or 1.58 percent, down at 51,063, bringing its cumulative loss in March to 13.2 percent, the most since October 2008.

In Seoul, the Kospi ended down 224 points, or 4.26 percent, at 5,052. That brought its losses for March to 19.1 percent, making for its worst monthly decline since October 2008. (Reuters & Xinhua)



Edited by Thomas McAlinden