Chinese markets mixed as investors digest economic data from China; Japan's GDP expands

Robotic arms work on the assembly line of electric vehicles at an intelligent factory of SERES Automobile Co., Ltd. on August 9, 2022 in Chongqing, China.
VCG | Visual China Group | Getty Images

Shares in the Asia-Pacific were mostly higher on Monday as investors monitored market reaction to Chinese economic data.

Mainland China markets were mixed. The Shanghai Composite fell slightly to end the day at 3,276.09 and the Shenzhen Component was up 0.33% at 12,460.22.

Hong Kong's Hang Seng index was 0.72% lower in the final hour of trade.

The S&P/ASX 200 in Australia rose 0.45% to close at 7,064.3.

MSCI's broadest index of Asia-Pacific shares outside Japan were 0.21% lower.

Japan's Nikkei 225 increased 1.14% to 28,871.78 while the Topix index added 0.6% to 1,984.96 after the country reported an expansion in GDP.

China's industrial output and retail sales data for July missed expectations.

India and South Korea markets are closed for a holiday Monday.

Hong Kong shares of Chinese companies fall after news of U.S. delisting plans

The Hong Kong shares of several Chinese firms, including China Life Insurance and China Petroleum and Chemical, fell following news that the companies plan to delist from the U.S.

The companies announced the news on Friday via disclosures on the Hong Kong Exchange.

China Life's shares in Hong Kong fell 1.7%, while China Petroleum and Chemical, or Sinopec, slipped 2.41%.

Shares of Petrochina, Aluminum Corporation of China and Sinopec Shanghai Petrochemical also fell after they made similar announcements on Friday.

— Abigail Ng

CNBC Pro: Fund manager says the bear market rally won't last and reveals how to position for it

Fund manager: This rally won't last — we'll be a bear market for some time
Top fund manager says we will be in a bear market for 'some time'

Major U.S. indexes have been in a bear market — or over 20% off recent peaks — for much of this year, with the S&P posting its worst first half since 1970. In July, however, stocks have rallied, and many on Wall Street have been debating if the bear market is over.

On Friday, the S&P 500 clinched its fourth straight positive week — its longest weekly winning streak since November 2021.

Hedge fund manager David Neuhauser said however, that markets are staging a bear market rally that will not last. He explained why, and revealed how investors can position for it.

Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Top tech investor Paul Meeks reveals whether it's time to go all-in on tech

Tech stocks were among the worst hit in the first half of the year as investors fled to safety amid a broad market-sell off. But investor interest in the sector appears to be picking up once more, begging the question — is it time to jump back into the sector?

Top tech investor and portfolio manager Paul Meeks shared his strategy for trading the sector, what he's watching in the market and his best ideas in the space.

Find out more on CNBC Pro.

— Zavier Ong

High prices in Japan are discouraging spending, professor says

Japan's gross domestic product for the April-June quarter missed expectations in part because of high prices, according to Sayuri Shirai, a professor at Keio University.

Consumption growth was not strong despite the easing of Covid restrictions because gasoline, utilities and food prices are "very expensive," she told CNBC's "Squawk Box Asia."

People are going to restaurants and amusement parks, but high prices are discouraging spending, she said.

Capital expenditure, on the other hand, was higher than what markets expected, but Shirai said that is not surprising.

"I think that was kind of expected because the January-March number was negative, and we know the large companies, they need to spend a lot of money for capex because of AI, digitization," she said.

— Abigail Ng

China's industrial production, retail sales data miss estimates

China's factory and consumer data for July came in below estimates, according to official data.

Industrial production grew by 3.8%, below the expected 4.6% in a Reuters poll and slightly lower than the 3.9% figure reported in June.

Retail sales increased 2.7% in July compared with the same period in 2021, below the 5% growth forecast.

— Abigail Ng, Evelyn Cheng

China's central bank cuts interest rates unexpectedly

The People's Bank of China lowered its one-year medium-term lending facility on 400 billion yuan ($59.3 billion) of loans to some financial institutions by 10 basis points to 2.75%, according to an announcement posted on the central bank's website.

According to Reuters, all 32 respondents in a poll last week forecast that the medium-term lending facility rate would be kept steady.

The PBOC also cut its seven-day reverse repo rate by 10 basis points to 2%.

— Abigail Ng

Japan's GDP grows, but misses estimates

Preliminary estimates showed Japan's annualized gross domestic product grew 2.2% in the April-to-June quarter compared with the previous quarter.

That's lower than the expected 2.5% increase based on forecasts in a Reuters poll.

— Abigail Ng

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