HONG KONG (AFP) - Asian shares lost ground and the dollar fell to its lowest level against the yen this year on Friday due to weak US and Chinese economic data, although Mumbai was lifted by positive earnings. Sentiment took a hit from news out of the United States earlier of a drop in manufacturing activity in New York state and only a modest rise in industrial production across the country last month. Data also showed a decline in US producer prices, suggesting a slow recovery and possible deflation. Googles second-quarter revenue also disappointed as it was only one percent up from the first quarter. The data sent the dollar to its lowest level so far this year against the yen. The greenback fell briefly to 86.93 yen in the afternoon, its first dip below 87 yen since July 1 and its lowest since early December. The euro bought 1.2921 dollars in Tokyo compared with 1.2922 dollars in New York earlier after soaring past 1.29 for the first time in over two months. The euro fell to 112.44 yen from 113.11 yen. The US economy, which had been believed to be staging a solid recovery, now seems to be stalling, said Hachijuni Bank dealer Masatsugu Miyata. Tokyo shares closed down 2.86 percent, with exporters such as Sony and Nissan hit hardest due to the strong yen. Hong Kong and Shanghai both closed flat, as Agricultural Bank of Chinas IPO underwhelmed on its Hong Kong debut, following a tepid start in Shanghai on Thursday. AgBanks shares closed up 2.2 percent from their 3.20 Hong Kong dollar IPO price. Investors are waiting on the sidelines as they think Agbank will fall below its IPO price in no time, said Wang Junqing at Guosen Securities. Shanghai was down two percent for the week as a whole and Hong Kong down 0.6 percent. Zijin Mining fell 3.73 percent in Hong Kong in the fall-out from a toxic spill that has killed off vast numbers of fish. Sydney closed down 0.45 percent, or 19.9 points, at 4,422.7, with new leader Julia Gillard expected to call national elections for August over the weekend. However Mumbai was more exuberant, edging up 0.26 percent, or 46.36 points, to 17,955.82, buoyed by strong quarterly earnings data from top software exporter TCS. TCS rose 6.16 percent after announcing that its net profit for the quarter ended June had jumped 21 percent to 18.44 billion rupees (402 million dollars), beating forecasts thanks to improved demand for outsourcing. Indias largest private bank ICICI Bank rose 2.32 percent on hopes it too would announce strong earnings amid higher demand for loans. Singapores Straits Times Index closed up 0.48 percent, or 14.17 points, at 2,957.72. DBS Group gained 18 cents to 14.80, while Singapore Airlines fell two cents to 15.02.