Asian shares mixed after China PMIs, regional data shrugged off

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Investing.com - Asian shares were narrowly mixed on Monday after PMI figures on services and manufacturing from China were seen as lukewarm and investors keep attention on geopolitical tensions in the Korean Peninsula ramped up in recent days following the latest ballistic missile test.

Japan's Nikkei 225 edged down 0.05% and South Korea's Kospi fell 0.25%. In Australia, the benchmark S&P/ASX 200 index was higher by 0.26%, driven by strong showings in its materials sub-index, which was up 1.57 percent.

Hong Kong's Hang Seng Index rose 0.35% while the Shanghai Composite was flat.

The CFLP manufacturing PMI reached 51.4, a tade below expected, but still in expansion, while a 54.5 for the services PMI also was een as steady. The private Caixin manufacturing reading is due on Tuesday with a reading of 50.4 seen. Any level above 50 denotes expansion.

The services sector accounted for over half of China's economy last year as rising wages give Chinese consumers the opportunity to shop, travel and eat out more. China's leaders are counting on growth in services and
consumption to rebalance their economic growth

Earlier, Japan reported industrial production datafor June rose 1.6%, compared to an expected provisional 1.7% gain.

Later, Australia reported private sector credit gained 0.6%, compared with a gain of 0.4% seen in June.

Last week, U.S. stocks closed mostly higher on Friday, shrugging off a slump in shares of Amazon after the e-commerce giant posted much weaker-than-expected quarterly profit.

Shares of Amazon.com Inc (NASDAQ:NASDAQ:AMZN) closed 2.48% lower on Friday, on the back of quarterly results that undershot market expectations, as second quarter earnings of 40 cents per share missed Wall Street estimates of earnings of $1.42 per share while net income fell 77% for the quarter.

The slump in shares of Amazon came a day after the tech-heavy Nasdaq retreated from highs, as investors took profits from the recent rally in tech stocks.

Meanwhile, economic data had little impact on stocks as the latest gross domestic product data showed a downward revision in first-quarter GDP while second-quarter GDP was in line with expectations.

U.S. gross domestic product (GDP) increased 2.6% in the second quarter, meeting expectations, while first quarter GDP was revised down to 1.2%, the Bureau of Economic Analysis said on Friday.

The data also revealed a slowdown in the annual pace of inflation, as the U.S. GDP price index, the broadest inflationary indicator, dipped more-than-expected to 1%, fuelling expectations that the Federal Reserve would keep rates low for longer than initially expected.

An uptick in energy, however, lifted sentiment as crude futures bagged their biggest weekly gain since December.

The Dow Jones Industrial Average closed higher at 21,830.31. The S&P 500 closed 0.13% lower while the Nasdaq Composite closed at 6374.68, down 0.12%.

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