Weak China data pushes Aussie dollar down to new low

Signs that downside risks to Chinese economic growth are increasing weakened Asian shares on 24 July and pushed the Australian dollar into a fresh multi-year low.

The Markit China manufacturing PMI, an index reflecting the manufacturing conditions of the world's second largest economy, has fallen to a 15-month low in July, data showed on Friday.

The index came in at 48.2 from 49.4 in June while analysts had been expecting a slight increase to 49.7. A reading below 50 indicates contraction.

The manufacturing output index has dropped to a 16-month low of 47.3 from 49.7.

At 7.40am GMT, Australia's All Ordinaries index was down 0.44%, Japan's Nikkei225 was down 0.67% and Hong Kong's Hang Seng index down 1%.

Jakarta's JSE composite was down 1.08% while South Korea's KSE11 had fallen 0.93%. BSE Sensex, India's main share index, was down 0.29%.

The Australian dollar was at 0.7295 after trading as low as 0.7269, its lowest since May 2009 and compared to its previous close of 0.7354. At the lowest, the Aussie was down 1.15% on the day.

Weak Chinese data weighs on Australia as raw materials shipments to China makes major share of its export revenue.