Asian shares mixed with Sydney down after weak China trade data

Investing.com - Shares in Sydney fell on Monday as China reported disappointing import data though exports were slightly less downbeat than expected in an overall mixed regional session.

The S&P/ASX 200 fell 0.11%. In Greater China, the Hang Seng index rose 0.12% and the Shanghai Composite was up 0.60% as the trade data signaled a continuation of current easy monetary policy.

The Nikkei 225 fell 0.21% despite an upward revision to first quarter GDP.

China said May exports fell 2.8%, less than the 5% drop seen, while imports dropped 18.1%, much more than the slide of 10.7% expected.

China customs gave the trade surplus as RMB366.8 billion, with a dollar figure set at $59.06 billion, well above the $44.95 billion forecast.

The data was crucial as a pointer for the economy in the second quarter following a poor first three months.

Notable was that the strength of the yuan and weak price-bargaining power restricted improvements in exports, China Merchants Securities said.

Earlier, Japan revised first quarter GDP up to a pace of 1% quarter-on-quarter from a preliminary 0.6% gain and an expected upward revision to 0.7%.

The revised GDP data showed the economic recovery has gained traction, reaching a 3.9% annual growth rate, and overcoming the drag from last year's sales tax hike and economists expect GDP to mark the third straight growth quarter in April-June, but at a slower pace.

Last week, U.S. stocks were mixed on Friday, as optimistic U.S. jobs data sent strong indications that the Federal Reserve could lift interest rates at some point this year.

The U.S. Bureau of Labor Statistics said on Friday morning that non-farm payrolls for the month of May soared by 280,000, far exceeding analysts' low end of forecasts for a 220,000 gain.

Private payrolls increased by 262,000 in May, as professional business services added 63,000 positions on the month. The labor market also added 17,000 construction position, following a significant gain of 35,000 a month earlier.

The Dow lost 56.12 or 0.31%, to close at 17,849.46, finishing down for the week. The NASDAQ, meanwhile, gained 9.33 or 0.18% to 5,068.46.

The S&P 500 lost 3.01 or 0.14% to 2,092.83, as six of 10 sectors closed in the red.

The unemployment rate ticked up to 5.5% last month from 5.4% in April, while average hourly earnings rose by 0.3%, above expectations for a 0.2% increase.

The robust jobs report added to the view that the U.S. economy was regaining strength after contracting in the first quarter, fuelling speculation that the Federal Reserve could raise rates as early as September.

In the week ahead, investors will be focusing on Thursday's U.S. retail sales report for May, as well as Friday's consumer sentiment data, for fresh indications on the strength of the economy and the timing of a rate increase.

On Monday, in the euro zone, Germany is to release data on industrial production.