Asian shares languished on Monday after the latest gauge of China's factory sector activity raised concerns about the world's second-largest economy.
MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.1 percent, while Japan's Nikkei stock average dropped 0.6 percent. The Shanghai Composite Index lost 1.2 percent.
The final HSBC/Markit Purchasing Managers' Index (PMI) for January came in at 49.7 on a seasonally adjusted basis, just below the 50.0 level that separates growth from contraction. The figure released on Monday was slightly lower than a preliminary "flash" reading of 49.8.
The official PMI released on Sunday fell to 49.8 in January, a low last seen in September 2012 and below the 50-point level. The unexpected contraction was the first in nearly 2-1/2 years, and firms see more gloom ahead.
The latest batch of downbeat data added to the debate over how and whether Beijing will accelerate its policy easing, with most bank economists calling for a combination of rate cuts and increased liquidity.
"The November policy rate cut was preceded by complaints by Premier Li about the lack of credit flow to businesses and we will be looking for similar hints to gauge the likelihood of a bazooka stimulus," said Tim Condon at ING, adding that he didn't consider the sub-50 official reading particularly surprising given seasonal factors and wider economic trends.