Investing.com - Asian shares mostly gained on Monday, shrugging off China HSBC flash PMI figures that unexpectedly fell in March with Japanese shares leading an early charge on bargain-hunting.
The HSBC data for March showed a drop to 48.1, compared to a forecast of 48.7 expected and to a final of 48.5 for the previous month. A figure below 50 implies contraction with the the latest number part of a string of disappointing China data suggesting a deepening economic slowdown at the start of 2014.
"The HSBC Flash China Manufacturing PMI reading for March suggests that China's growth momentum continued to slow down. Weakness is broadly based with domestic demand softening further," said HSBC chief China economist Qu Hongbin.
"We expect Beijing to launch a series of policy measures to stabilize growth. Likely options include lowering entry barriers for private investment, targeted spending on subways, air cleaning and public housing, and guiding lending rates lower."
The Nikkei 225 index rose 1.83% in the morning while South Korea's Kospi was up 0.7%, but the Australian S&P/ASX 200 was 0.1% weaker.
Hong Kong's Hang Seng gained 1.10% in the morning session even as Hutchison (0013.HK) fell to a five-week low.
The Nikkei fell to a six-week low Friday as an April 1 increase in Japan's consumption tax looms, and worries about China's financial sector persist. Tokyo markets were closed Friday for holiday.
Last week, the Dow Jones Composite fell 0.17%, theS&P 500 index fell 0.30%, while the Nasdaq index fell 0.98% at the close on Friday.
The European Union and the U.S. intensified sanctions against Russian President Vladimir Putin and his allies to pressure his government to defuse the global standoff over Ukraine.
Elsewhere, expectations for the Federal Reserve to continue tapering monthly bond purchases, currently at $55 billion a month, edged stocks lower as well.
Fed Chairwoman Janet Yellen said earlier this week that interest rates will rise around six months after the bond-buying program closes, which markets view as sometime this fall.
Fed asset purchases aim to stimulate the economy by suppressing interest rates to send stocks rising in hopes investing and hiring follow suit.
European indices, meanwhile, finished higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 0.41%, France's CAC 40 rose 0.17%, while Germany's DAX rose 0.50%. Meanwhile, in the U.K. the FTSE 100 rose 0.23%.
On Monday, the U.S. is to release preliminary data on manufacturing activity.