China's Shanghai Composite index eased 1.18 percent to 3,573.21 as data showed China's factory activity deteriorated in July to a three-month low. The index has slipped from a seven month high following this. The manufacturing sector in China continued to contract in July, and at a faster rate, the latest survey from the National Bureau of Statistics (NBS) showed on Thursday with a manufacturing PMI score of 49.3.

The index slipped further beneath the boom-or-bust line of 50 that separates expansion from contraction. The NBS also said that its non-manufacturing PMI came in at 50.1 - shy of expectations for 50.3 and down from 50.3 in the previous month. The composite index had a score of 50.2, down from 50.7 a month earlier.

Hong Kong's Hang Seng index also lost 1.60 percent to 24,773.33.

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