Most Asia markets reversed early losses to trade higher on Monday, but Japan shares slipped after data showed the world's third-largest economy failed to grow in the three months through June, missing already subdued forecasts.
The Nikkei 225 index in Tokyo shed 50.36 points, or 0.3%, to 16,869.56
In Hong Kong, the Hang Seng Index gained 165.6 points, or 0.7%, to 22,932.51
Shares of Japanese electronics maker Sharp rose 10.4%, extending Friday's more than 19% gain, after news on Friday that China's antitrust authorities approved the massive takeover bid from Taiwanese manufacturer Hon Hai.
Before market open on Monday, data from the Japanese cabinet office showed the country's gross domestic product (GDP) was unchanged in the April-June quarter from the January-March quarter, with exports weighing. The economy, however, grew 0.2% on an annualized basis.
A poll of economists had expected an annualized increase of 0.7% and a quarterly rise of 0.2%.
Also dampening the sentiment in Japan, the yen was relatively stronger, trading at 101.07 against the dollar as of late afternoon. The Japanese currency traded as high as 101.02 earlier in the session, compared with levels near 102.0 on Friday
The subdued numbers will likely revive doubts over Japanese Prime Minister Shinzo Abe's efforts to kick start the economy. In July, Abe had announced a fiscal stimulus package worth 28 trillion yen, but analysts believed it would likely have limited impact in boosting future GDP growth.
In company news, Australian health and safety protection solutions provider Ansell reported its full year 2016 earnings, posting sales revenue of $1.572 billion U.S., which was down 4% from a year earlier.
While Ansell said its results were at the low end of its guidance, the company also said it would consider continuing its share buyback.
Dow Jones also reported that the company was weighing the sale of its sexual wellness division, which makes condoms. Ansell shares jumped 17.7%
Major Australian miners were down more than 2% each, with Fortescue dropping 3.3%
CHINA
The Shanghai CSI 300 gained 99.19 points, or 3%, to 3,393.42
The market likely expected additional stimulus from Beijing after the mainland's data deluge last week showed the economic health of the world's second largest economy was falling short of expectations.
Investors were also likely anticipating the launch of the Shenzhen-Hong Kong stock connect due sometime this year. On Friday, Reuters reported that China's financial regulatory body, the China Securities Regulatory Commission (CSRC), was preparing for the imminent launch and had set up a small working group to coordinate it.
The cross-border investment program was similar to the Shanghai-Hong Kong connect program allowing investors in the Chinese mainland to buy Hong Kong-listed shares.
In other markets
Markets in South Korea were closed for Liberation day public holiday.
The Taiex Index in Taiwan subtracted 68.59 points, or 0.8%, to 9,131.83
In Singapore, the Straits Times Index dropped 0.19 points to 2,867.21
In New Zealand, the NZX 50 took on 25.25 points, or 0.3%, to 7,388.35
The ASX 200 added 9.05 points, or 0.2%, to 5,539.97
