Asian Shares Mixed On China COVID Woes

(RTTNews) - Asian stocks ended mixed on Monday as U.S. rate hike worries persisted, and China tightened COVID-19 curbs in some big cities.

There were fears over energy rationing in Europe after Russia said one of its main supply pipelines to Europe would remain shut indefinitely.

The dollar index held at a 20-year high and gold edged lower on dollar strength while oil prices jumped more than 2 percent ahead of a meeting of OPEC= producers to decide on supply.

China's Shanghai Composite index rose 0.42 percent to 3,199.91 after a private survey showed the country's services sector activity grew more than expected in August.

The Caixin services purchasing managers index came in at 55 for August, down from reading of 55.5 but better than expectations for a score of 54.

Hong Kong's Hang Seng index fell 1.16 percent to 19,225.70 as Chinese authorities extended Covid-19 lockdowns of Chengdu and Shenzhen.

Japanese shares edged lower to extend losses for the fourth straight session on worries about the European gas crisis and signs of economic softening in the United States.

Disappointing economic data also weighed on sentiment, with the final au Jibun Bank Japan Services purchasing managers' index falling to a seasonally adjusted 49.5 in August, marking the first contraction since March.

The Nikkei average slipped 0.11 percent to 27,619.61 while the broader Topix index finished marginally lower at 1,928.79.

Uniqlo clothing store owner Fast Retailing fell 1.2 percent after reporting same store sales data for August. Regional lender Jimoto Holdings slumped 8.5 percent after flagging an annual net loss.

Seoul stocks fell slightly, with the Kospi average closing down 0.24 percent at 2,403.68 - extending losses for a third straight session. Tech and airline stocks paced the decliners.

Australian markets eked out modest gains as stronger metal and oil prices lifted mining and energy stocks. The benchmark S&P/ASX 200 edged up 0.34 percent to 6,852.20 ahead of the cash rate decision from the Reserve Bank on Tuesday.

The broader All Ordinaires index ended 0.26 percent higher at 7,074.50. Coal miners Woodside Energy, New Hope Corporation and Whitehaven Coal jumped 4-7 percent. Across the Tasman, New Zealand's benchmark S&P/NZX 50 index ended marginally lower at 11,619.04.

U.S. stocks fell on Friday to cap their straight weekly decline after data showed hiring slowed in August, as widely expected, and the unemployment rate ticked up to 3.7 percent.

A separate report showed a sharp pullback in new orders for U.S. manufactured goods in July.

The Dow and the S&P 500 lost around 1.1 percent each, while the tech-heavy Nasdaq Composite shed 1.3 percent.