- Asia-Pacific stocks slipped on Monday.
- Chinese economic data released over the weekend showed a contraction in April factory activity.
- Markets in Hong Kong, mainland China, Singapore and Taiwan were closed on Monday for a holiday.
SINGAPORE — Shares in Asia-Pacific slipped on Monday, with data released over the weekend showing Chinese factory activity contracted in April.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.56%.
China's factory activity contracted at a steeper pace in April as Covid lockdowns hit industrial production, according to data released over the weekend.
The official manufacturing Purchasing Managers' Index for April declined to 47.4, a second straight month of contraction following with March's reading of 49.5, data from the National Bureau of Statistics showed Saturday.
The 50-point mark in PMI readings separates growth from contraction. PMI readings are sequential and represent month-on-month expansion or contraction.
A private survey also showed contraction in Chinese factory activity, with the Caixin/Markit manufacturing PMI coming in at 46, declining from the previous month's reading of 48.1.
"Omicron and the government's zero-covid policy were the main culprits for China's activity decline in April, halting industrial production and disrupting supply chains," Rodrigo Catril of National Australia Bank wrote in a note.
"A sharp Chinese economic slowdown in the second quarter remains a realistic outcome at this stage and if history is any guide, global hit to growth would follow shortly after," said Catril, a currency strategist at the firm.
The data come as mainland China has been grappling for weeks with its worst Covid outbreak since 2020.
Markets in Hong Kong, mainland China, Singapore and Taiwan are closed on Monday for a holiday.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.428 after a recent jump from levels below 102.4.
The Japanese yen traded at 130.307 per dollar, still weaker as compared with levels below 128 seen against the greenback last week. The Australian dollar was at $0.7055 after dropping from above $0.714 in the previous week.
Oil prices were lower in the afternoon of Asia trading hours, with international benchmark Brent crude futures declining 0.89% to $106.19 per barrel. U.S. crude futures shed 0.91% to $103.74 per barrel.