Mixed Asian markets Friday kept investors watchful as China’s economy continued its downward trend, indicating worsening global economic condition.

The Chinese Shanghai Composite fell 0.17 percent or 3.81 points to 2181.68. Hong Kong's Hang Seng rose 0.23 percent or 44.27 points to 19069.38. Major gainers were Bank of China Ltd (1.08 percent) and Sino Land Co Ltd (1.46 percent).

Japan's Nikkei Stock Average marginally fell 0.05 percent or 4.22 points to 8715.79. Among major gainers were Sharp Corp (2.11 percent), Japan Tobacco Inc (2.11 percent) and Sapporo Holdings Ltd (1.96 percent).

South Korea’s KOSPI Composite Index rose 0.6 percent or 10.67 points to 1796.06. Shares of Samsung Electronics Co Ltd climbed 2.75 percent and shares of Hyundai Motor Co advanced 2.7 percent.

India's BSE Sensex rose 0.51 percent or 87.88 points to 17320.43. Major gainers were Tata Consultancy Services (2.34 percent), HDIL (1.35 percent) and IDBI Bank Ltd (1.20 percent). Tata Consultancy Services, India's top software services provider, reported a net profit of 32.8 billion rupees ($589 million) for the quarter ending June, up from 23.8 billion rupees a year earlier.

The data released Friday by the National Bureau of Statistics shows that China’s gross domestic product grew at 7.6 percent in the second quarter of 2012 compared to the same period a earlier year. Market participants feel it is imperative to have stimulus measures to regain growth momentum.

Investors are concerned that growth in the world’s second-largest economy, which continued to slowdown for six continuous quarters, is being seriously affected by deepening of the debt burden faced by the euro zone and the faltering U.S. economic condition.

In another report that dragged down the market sentiment, Moody’s Investors Service cut the Italian government's bond rating to Baa2 down from A3. The reasons for the downgrade, it says, are the deterioration of economic prospects in Italy and its inability in implementing reforms.

Adding to market participants' woes was the report that South Korea’s economic growth forecast was reduced by the Bank of Korea to 3 percent this year, down from the prediction of 3.5 that  made in April.