The optimism following a rate cut in China has subdued over concerns that the country might be releasing weak economic data for the month of May.

The surprise rate cut announced on Thursday boosted business sentiments as it was believed that the availability of credit at lower rates would help boost the economic growth in the world's second largest economy. The move also spread hope that major economies were looking to stimulate their economies and would soon announce steps to revive economic growth.

Some believe that the rate cut could be an indication of a weak economic performance in eth month of May, data for which is yet to be released by the authorities. China's industrial production and CPI data are expected to be released this weekend and it will be detrimental of months performance.

According to a poll of economists by Reuters, the Chinese economy is expected to deliver its weakest quarter of growth in three years in the second quarter at 7.9 percent. It is expected to continue with the sixth straight quarter of slow growth.

Meanwhile, China reported a slowdown in the manufacturing sector as the purchasing managers' index of Chinese manufacturing activity fell more than expected. The purchasing managers' index dropped fell to 50.4 points in May compared to 53.3 in April, according to the China Federation of Logistics & Purchasing and the National Bureau of Statistics.