(RTTNews) – Asian stocks turned in a mixed performance on Monday as China’s factory activity data painted a mixed picture of the world’s second-largest economy and investor enthusiasm for artificial intelligence waned.
Upcoming Federal Reserve meeting and political risks in Indonesia and Thailand were also in focus.
Meanwhile, U.S. President Donald Trump defended $183.1 billion in tariff revenues as economic driver after a U.S. appeals court declared most of his tariffs illegal, giving the administration until October 14 to appeal to the US Supreme Court.
China’s Shanghai Composite index rose 0.46 percent to 3,875.53 after surveys showed a slight improvement in Chinese factory data.
A government survey showed China’s factory activity improved marginally in August, with the corresponding PMI rising to 49.4 from 49.3 in July. Another private sector survey showed that manufacturing PMI inched up to 50.5 last month from 49.4 in July.
Hong Kong’s Hang Seng index surged 2.15 percent to 25,617.42. Alibaba Group Holding shares soared 13.5 percent after the company reported a surge in revenue from China’s AI boom.
Japanese markets fell sharply to hit a three-week low, with tech stocks falling as disappointing Q1 earnings reports from Marvell and Dell raised concern about data-center equipment demand.
The Nikkei average tumbled 1.24 percent to 42,188.79 while the broader Topix index settled 0.39 percent lower at 3,036.19. Chip group Advantest slumped 7.9 percent and technology investor SoftBank Group lost 4.8 percent.
Seoul stocks ended sharply lower amid uncertainties in the semiconductor and artificial intelligence sectors. The Kospi average fell 1.35 percent to 3,142.93.
Samsung Electronics lost 3 percent and SK Hynix plummeted 4.8 percent after the U.S. Commerce Department removed the companies from the list of entities authorized to move some goods from China without a license, threatening production in the world’s largest semiconductor market. The move is set to go into effect in 120 days.
Australian markets closed lower, dragged down by losses in heavyweight banks and miners. The benchmark S&P/ASX 200 dropped 0.51 percent to 8,927.70 while the broader All Ordinaries index closed half a percent lower at 9,196.80.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index rallied 1.08 percent to 13,070.45, extending gains for a third consecutive session.
The U.S. dollar fell to a five-week low against a basket of currencies as investors looked ahead to key jobs data and monitored Fed Governor Lisa Cook’s fight to block her dismissal by President Trump.
Gold hit a more than four-month high to trade at $3,471 per ounce amid increased bets for a U.S. Federal Reserve interest-rate cut this month.
Oil prices rose about half a percent in Asian trading, driven by renewed threats to Russian supply following fears of supplementary tariffs by the European Union.
U.S. stocks ended lower on Friday as new data revealed rising prices remain a risk heading into September.
Data showed core PCE, a key inflation measure watched by the Federal Reserve which excludes the costs of food and energy, rose 2.9 percent in July, matching estimates but accelerating from the prior month to reach its highest level since February.
The S&P 500 declined 0.6 percent but notched its fourth winning month in a row. The tech-heavy Nasdaq Composite lost 1.2 percent and the Dow slipped 0.2 percent.
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