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Asian markets fall after weak Chinese, Japanese data

Asian markets sank following weak Chinese and Japanese manufacturing data Feb. 28, amid revived fears about faster rate rises in the U.S. that sent U.S. stocks down Feb. 27.

China's manufacturing purchasing managers' index in February dropped to 50.3 in what was the largest fall in more than six years. China's Shanghai Composite Index fell 0.99% to close at 3,259.41.

China's statistics bureau attributed the slower pace of expansion to seasonal effects from the Chinese New Year holidays in mid-February.

"All in all, we are still positive on manufacturing in 2018," according to an ING research note.

Nonmanufacturing PMI declined to 54.4 from 55.3 in January, which shows that consumption, tourism and travel sectors did not balance off lower activities in the banking, financial and real estate sectors during the long holiday period. "That implies there is still room for consumption to increase," the ING report noted.

Japan's industrial production fell 6.6% month over month to 99.5 in January, with an assessment of "picking up slowly," preliminary government data showed.

Japan's Nikkei 225 Index ended a three-day rally to close down 1.44% at 22,068.24. Hong Kong's Hang Seng Index closed down 1.36% to 30,844.72.

U.S. stocks on Feb. 27 posted their biggest losses since the global selloff three weeks ago after Fed Chairman Jerome Powell said "further gradual increases" in interest rates are needed to keep the economic expansion going.

Meanwhile, European markets opened lower Feb. 28, with the FTSE 100, Germany's DAX and France's CAC 40 down in early morning trading.