Asia report: Markets mixed on positive China industrial data

Markets in Asia finished in a mixed state on Monday, as investors digested the latest economic data out of China, as well as reports of fresh corporate sanctions being imposed by the US.

In Japan, the Nikkei 225 was up 1.32% at 23,511.62, as the yen strengthened 0.23% against the dollar to last trade at JPY 105.34.

Of the major components on the benchmark index, automation specialist Fanuc was up 0.52%, fashion firm Fast Retailing added 1%, and technology conglomerate SoftBank Group was 2.87% higher.

The broader Topix index added 1.69% by the end of trading in Tokyo, closing at 1,661.93.

On the mainland, the Shanghai Composite was off 0.06% at 3,217.53, and the smaller, technology-heavy Shenzhen Composite lost 0.75% to 2,126.88.

Fresh economic data out of China showed the country’s industrial profits rose 19.1% year-on-year in August.

“That should bring some cheer to Asian markets, as another confirmation that China's recovery remains on track,” said Oanda senior Asia-Pacific market analyst Jeffrey Halley.

“That should be confirmed on Wednesday when both official and Caixin manufacturing and non-manufacturing PMIs are released.”

South Korea’s Kospi was up 1.29% at 2,308.08, while the Hang Seng Index in Hong Kong rose 1.04% to 23,476.05.

Shares in Chinese semiconductor company SMIC slid 3.88% in Hong Kong, after reports that the US was restricting American companies from exporting to the firm.

The move would put a dent in China’s plans to boost its chipmaking sector, which the country has accelerated amid ongoing tensions between Beijing and Washington.

Shares in China Evergrande Group, meanwhile, rocketed 20.61% after plunging on Friday, following refuted reports that the property developer was looking for government support for a restructure, in a bid to avoid a cash crisis.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics up 1.14%, while SK Hynix lost 0.48%.

“On Thursday, manufacturing PMI's are released across Asia and Europe along with Japan's Tankan survey,” Jeffrey Halley noted.

“We are expecting a mixed bag with Asian PMI's rising, but still mostly in contractionary territory, with much the same story from the Tankan.”

Oil prices were lower at the end of the Asian day, with Brent crude last down 0.74% at $41.61 per barrel, and West Texas Intermediate losing 0.94% to $39.87.

In Australia, the S&P/ASX 200 was 0.21% weaker at 5,952.30, while across the Tasman Sea, New Zealand’s S&P/NZX 50 eked out gains of 0.04% to settle at 11,802.29.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.23% at AUD 1.4192, and the Kiwi advancing 0.08% to NZD 1.5264.