HONG KONG, July 2 (AFP): Asian markets were mixed Thursday as investors sought firm signals ahead of key US jobs data, while another strong performance in Shanghai raised fears its rally will run out of steam.

Wall Street earlier began the new quarter on an upbeat note as an encouraging report on the US manufacturing sector helped offset weak news from the private labour market.

The Dow Jones Industrial Average rose 0.68 per cent.

The Institute of Supply Management manufacturing index, also known as the purchasing managers index, increased to 44.8 per cent from 42.8 per cent in May. It was below the 50 per cent level that separates expansion and contraction, and just under the 45 per cent expected by private economists.

Shanghai closed up 1.73 per cent, closing at its highest point in over a year, raising fears that the already hot market was due a correction.

Tokyo edged down 0.64 per cent as investors turned cautious ahead of a US non-farm payrolls report due later Thursday, dealers said, while Hong Kong lost 1.09 per cent on a lack of firm buying signals.

TOKYO: Down 0.64 per cent. The Nikkei-225 lost 63.78 points to end at 9,876.15.

HONG KONG: Down 1.09 per cent. The Hang Seng Index lost 200.68 points to 18,178.05.

SYDNEY: Flat. The S&P/ASX 200 rose 3.3 points, or 0.09 per cent, to 3,877.3.

SHANGHAI: Up 1.73 per cent. The Shanghai Composite Index, which covers A and B shares, was up 52.10 points to 3,060.25.

TAIPEI: Up 1.35 per cent. The weighted index rose 88.56 points to 6,667.53.

SEOUL: Flat. The KOSPI ended down 0.18 points at 1,411.48.

SINGAPORE: Down 1.35 per cent. The Straits Times Index fell 31.73 points to 2,320.82.

KUALA LUMPUR: Down 0.1 per cent. The Kuala Lumpur Composite Index fell 0.69 points to close at 1,078.71

JAKARTA: Up 0.28 per cent. The Jakarta Composite Index gained 5.86 points to 2,065.75

MANILA: Up 0.21 per cent. The composite index put on 5.15 points to close at 2,438.04.

BANGKOK: Down 1.85 per cent. The Stock Exchange of Thailand dropped 11.06 points to close at 586.42.

WELLINGTON: Down 0.44 per cent. The NZX-50 fell 12.18 points to 2,768.19

Fletcher Building gained 10 cents to 6.52 dollars.