(MENAFN- FxPro) Asian shares were mixed on Monday after a slew of data painted a reasonable picture for growth in China, Japan and Australia, though some dull spots remain.
The Nikkei 225 fell 0.35% despite solid numbers on manufacturing and capital spending and the S&P ASX/200 eased 1.07%.
But the Shanghai Composite was up 2.77% as manufacturing data met expectations and the Hang Seng index was up 0.66%.
The China HSBC Manufacturing PMI for May met expectations at 49.2, a slight tick up from 49.1 in April, with the official CFLP at 50.2, a mild improvement from the previous month but just short of the expected 50.3.
"The May CFLP PMI rose slightly, indicating economic growth is moving toward stabilization," said Zhang Liqun, a government economist, on the CFLP PMI.
While Annabel Fiddes, economist at Markit, on the HSBC PMI, said it "signalled a further deterioration in the health of China's manufacturing sector in May."
"A solid fall in new export work contributed to fewer new orders, which in turn led to the first contraction of output in 2015 so far. Furthermore, sustained job cuts, ongoing destocking activities and
reduced purchasing activity all suggest that the sector may remain in contractionary territory as we head into mid-year. The latest survey data therefore suggest that more stimulus measures may be required to help boost domestic demand and recover some growth momentum."
The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.
Earlier, the Australia AI Group manufacturing index rose 4.3 points to 52.3, the highest since October 2013.
Manufacturing is getting a boost mainly from food and beverages which are supported by local demand and exports as a result of a lower exchange rate.
"The flow of benefits for domestic producers from the lower Australian dollar is picking up as exports recover some of the ground lost in recent years," said AI Group Chief Executive Innes Willox.
"This was a clear positive for performance in May together with strong residential construction activity and very low interest rates and helped propel the sector into expansionary territory for the first time in six months. There remains a fine balance, however, and the rapid decline in mining construction, the progressive closure of automotive assembly and subdued local business investment in machinery and equipment continues to weigh on local demand."
In Japan, capital spending for non-financial firms jumped 7.3% year-on-year in the first quarter, compared to an expected drop of 0.1%. Japan manufacturing for May was steady at 50.9 as expected.
Also in Australia the Melbourne Institute inflation gauge for May rose 0.3% month-on-month, unchanged,building approvals fell 4.4%, more than the 2.0% decline seen, business inventories for the first quarter rose 0.4%, more than the 0.1% seen and company profits for the first quarter gained 0.2%, less than the 0.5% quarter-on-quarter expected.
Last week, West Texas Intermediate oil futures soared more than 4% on Friday, after data showed that the number of rigs drilling for oil in the U.S. fell by the most in four weeks last week, soothing worries that the sharp decline in drilling activity may be nearing an end.
Industry research group Baker Hughes (NYSE:NYSE:NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. fell by 13 last week to 646. The drop marks the 25th straight week of declines and the biggest fall in four weeks.
A week earlier, the rig count fell by just one, marking the slowest rate decline over the last 24 weeks and fuelling concerns that U.S. shale production could rebound in the months ahead.
Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
The U.S. Energy Information Administration said on Wednesday that crude oil inventories fell by 2.8 million barrels last week to 479.4 million. It was the fourth straight weekly decline.
Elsewhere, on the ICE Futures Exchange in London, Brent for July delivery rallied $2.98, or 4.76%, to end at $65.56 a barrel on Friday.
Despite the disappointing reading, most market experts expect the U.S. economy to rebound in the second quarter, as transitory factors recede.
Economic data released in the past week, including reports on inflation, new home sales, business investment and consumer confidence all indicated that the economy is gaining momentum after a slowdown in the first quarter, supporting the case for higher interest rates later this year.
In the week ahead, investors will be focusing on Friday's nonfarm payrolls report for May, for fresh indications on the strength of the economy and the timing of a U.S. rate increase.
On Monday, Germany is to release preliminary data on manufacturing activity. The euro zone is to release final data on manufacturing sector growth.
Later in the day, the U.S. Institute of Supply Management is to release data on manufacturing activity.
Last week, U.S. stocks fell broadly on the final trading session of the month, as U.S. GDP for the first quarter was revised downward on Friday as expected, providing a harbinger for tepid economic growth over the current period.
Stocks dropped considerably on Friday after GDP in the first quarter was lowered to minus 0.7% from an initial reading of 0.2%. The reading was in line with analysts' expectations of a downward revision of minus 0.8%. A surge in imports to 5.6% from an initial gain of 1.8%, linked to an abrupt unloading of imports at West Coast ports was thought to be responsible for the revision. A port work stoppage throughout the winter weighed on the U.S. economy in the first quarter.
The Dow Jones Industrial Average and the S&P 500 Composite fell more than 0.6% on the session, while the NASDAQ dropped more than 25 points to fall out of near-record territory. The Dow lost 115.44 or 0.64% to close the session at 18,010.68. The NASDAQ lost 27.95 or 0.55% to 5,070.03, while the S&P 500 fell 13.40 or 0.63% to 2,107.39, as all10 sectors closed in the red. Stocks in the Technology, Financials and Industrials sectors lagged, each dropping by more than 0.7%.
For the month, though, all three major indices closed higher after each reached an all-time closing high at one point in May.
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