China shares higher on data indicating factory activity rose in March

On Wednesday a government survey indicated that factory activity had picked up unexpectedly in March, the news pushed Chinese shares higher.

The latest Purchasing Managers' Index (PMI) rose to 50.1, up from February's 49.9 and higher than market forecasts. A reading above 50 points shows an expansion in activity in the sector, while the one below signals contraction.

The mainland Shanghai Composite index rose 1.4% to 3,801.2, while Hong Kong's Hang Seng was up 0.6% at 25,055.

While the official PMI survey suggested activity had expanded, a private survey signalled it had contracted, in line with preliminary figures released earlier this month.

The final HSBC/Markit PMI came in at 49.6, slightly higher than a "flash" reading of 49.2. China has cut interest rates twice since November, among other measures, to try to boost activity.

Japanese shares declined after a survey of big manufacturers demonstarted that while confidence held steady in the first quarter, it is expected to worsen.

The Bank of Japan's quarterly Tankan showed that big firms plan to cut spending by 1.2% in the fiscal year that starts in April - a worrying sign for the economy.

Tokyo's Nikkei 225 index declined 0.9% at close, at 19,034.84.

A poll also suggested that Japanese manufacturing activity expanded more slowly in March than in the previous month as domestic orders contracted for the first time in nearly a year.

The final Markit/JMMA PMI was 50.3, just below the preliminary reading of 50.4 and below 51.6 in February.

In Australia, the S&P/ASX 200 closed down 0.5% at 5,860.8, with shares hit by persistently weak commodity prices.

South Korean shares were down after a private survey indicated that manufacturing activity and new export orders contracted in March. The benchmark Kospi index ended down 0.6% at 2,028.45.

The HSBC/Markit PMI fell to 49.2, down from a 20-month high of 51.1 that was seen in both January and February.