Weak Chinese manufacturing survey weighs on markets

LONDON (AP) - A weak Chinese manufacturing survey weighed on European markets Tuesday. Australia's stock index was the standout performer after the Australian central bank surprised many in the markets by cutting interest rates.

KEEPING SCORE: In Europe, the FTSE 100 index of leading shares was down 1.1 percent at 6,174 while Germany's DAX fell 1.8 percent to 9,939. The CAC-40 in France was 1.6 percent lower at 4,372. U.S. stocks were poised to open lower too, with the Dow futures and the broader S&P 500 futures down 0.7 percent.

CHINA WORRIES: The Caixin magazine's purchasing managers' index for the manufacturing sector declined to 49.4 points from March's 49.7 on a 100-point scale on which numbers below 50 show activity contracting. Worries over the state of the Chinese economy were largely responsible for the turmoil in global financial markets in the early part of the year, and the weak survey resonated round the world.

ANALYST TAKE: "Investors would appear to be wondering whether China data is signaling renewed weakness," said Mike van Dulken, head of research at Accendo Markets.

ASIA'S DAY: In spite of the Chinese report, Asian markets ended higher. The Shanghai Composite index rose 1.8 percent at 2,992.64. Hong Kong's Hang Seng shed 1.8 percent to 20,676.94. South Korea's KOSPI gained 0.4 percent to 1,986.41. Southeast Asian markets were mixed. Japan's stock market is closed for the Golden Week holidays.

AUSTRALIA IN FOCUS: Australia's S&P/ASX 200 closed 2.1 percent higher at 5,353.80 after the Reserve Bank of Australia lowered the official interest rate by 25 basis points to 1.75 percent effective Wednesday. RBA Governor Glenn Stevens pointed to lower than expected inflationary pressures, slow but continued global economic growth, and Australia's trade remaining much lower than in recent years. The Australian dollar took a hit after the decision, trading 1.4 percent lower at $0.7555.

ENERGY: Benchmark U.S. crude oil lost 46 cents to trade at $44.32 a barrel in electronic trading on the New York Mercantile Exchange, while Brent, the international standard, fell 24 cents to $45.59 a barrel.

CURRENCIES: The euro was up 0.4 percent at $1.1567 while the dollar fell 0.5 percent to 105.90 yen.