The Nikkei 225 fell despite second-quarter Japan Gross Domestic Product numbers surprising to the upside as investors in Asia digested the release of a barrage of China data on Monday.
In Japan, the Nikkei 225 index returned to business after a long weekend to lose 192.64 points, or 1%, to 19,537.10
The Hang Seng Index restored 366.72 points, or 1.4%, to 27,250.23
Markets appeared to shrug off headlines that the Japanese economy grew at an annualized rate of 4% in the second quarter of the year ending in June compared to the previous year. That easily topped the 2.5% rise forecast
The yen softened against the U.S. dollar following the GDP beat, with the greenback fetching 109.20 yen after the data release compared to levels around 109.14 yen seen before. The Japanese currency last traded at 109.53 yen to the dollar.
Australian indexes ended positive, with the broader index driven by gains in the information technology, energy and heavily-weighted financials sub-indexes.
In corporate news, Commonwealth Bank of Australia CEO and Managing Director Ian Narev is expected to retire by the end of the 2018 financial year, the bank said on Monday. CBA has recently been dogged by allegations that it potentially ignored breaches in money-laundering regulations in Australia. CBA shares finished the session up 1%
In individual stocks, Australia's Bendigo and Adelaide Bank closed up 7.5% after the bank reported full-year net profit after tax attributable to owners rose 3.4%. Other Australian financials were a mixed picture: with National Australia Bank up 1.8% but AMP off by 0.6%
Meanwhile, shares of Ansell closed down 3% after the rubber products manufacturer announced full-year profit fell 7.2% and missed estimates. The company attributed the fall in profit to increasing raw material prices and acquisition charges.
In currency markets, the Australian dollar, which is usually sensitive to Chinese economic data, was softer after China data released on Monday missed expectations. The Aussie dollar traded at $0.7905 U.S. after the data release, compared to levels around $0.7914 seen just before. The Australian currency traded at $0.7893 U.S. mid-afternoon local time.
Other market movers included Hong Kong-listed Wanda Hotel Development stock, which soared 40.8% late afternoon local time. Wanda Hotel said last week it would be buying $1 billion U.S. in assets from companies controlled by Dalian Wanda Group Chairman Wang Jianlin as the company attempts to restructure.
Taiwan-listed Hon Hai Precision Industry saw its stock give up 2.2% after the company announced second-quarter earnings last Friday that were shy of market consensus.
Despite that, Nomura analysts maintained their "buy" call on the company and raised their target price for Hon Hai stock to 139 Taiwan dollars ($4.58 U.S.) from 107.0 Taiwan dollars.
Markets also kept an eye on developments in the Korean peninsula after tensions flared up between the U.S. and North Korea last week. Over the weekend, the hermit state claimed that more than three million volunteers had offered to join its army. A U.S. intelligence official said on Sunday that it would not be unexpected for North Korea to test another missile.
CHINA
The CSI 300 regained 47.33 points, or 1.3%, to 3,694.68
Factory output in China rose 6.4% in July compared to the previous year, below the 7.2% predicted. Meanwhile, fixed asset investment rose 8.3% in the first seven months this year, below the 8.6% forecast. Retail sales grew 10.4% compared to one year ago, falling short of the 10.8% rise forecast.
In other markets
In Singapore, the Straits Times Index recovered 28.97 points, or 0.9%, to 3,308.69
In Taiwan, the Taiex index lost 104.29 points, or 1%, to 10,225.28
In Korea, the Kospi index gained 14.51 points, or 0.6%, to 2,334.22
In New Zealand, the NZX 50 moved up 42.83 points, or 0.6%, to 7,761.94
In Australia, the ASX 200 gained 37.27 points, or 0.7%, to 5,730.41
