Asian Shares Mixed On Concerns Over US Growth

(RTTNews) - Asian stocks turned in a mixed performance on Monday as weak U.S. economic data raised the risk of slowing growth when inflation is still high.

The U.S. dollar was under pressure in Asian trade while gold held firm above $4,400 an ounce as traders reduced bets for the Federal Reserve to cut raise interest rates next month.

Oil prices remained elevated as renewed fighting in Lebanon and further tanker attacks in the Strait of Hormuz clouded prospects for ending the U.S.-Iran war.

Brent crude futures fell slightly to $88.14 a barrel after climbing 6 percent last week. Investors braced for further supply disruptions despite Iran and Oman appear to be moving closer to an understanding over the management of the Strait of Hormuz.

Following attacks on tankers, only five commodity vessels transited the Strait of Hormuz on Saturday while none registered for Sunday, versus 31 in the prior weekend, according to ship tracking data from Kpler.

China's Shanghai Composite index rallied 1.41 percent to 3,982.65 ahead of key July activity data released later in the day.

Hong Kong's Hang Seng index surged 1.34 percent to 25,453.23 even as a slew of weak data reinforced concerns about the health of the world's second-largest economy.

Chinese consumer spending stalled in July, urban investment contracted at a faster pace and unemployment ticked higher, adding to pressure on Beijing to step up policy response in the second half of the year.

Japanese markets advanced while the dollar-yen pair showed resilience as Japan's 10-year bond yield hit a three-decade high, approaching the closely watched 3 percent level on inflation concerns and expectations of an interest rate hike next month.

Investors shrugged off data that showed Japan's economy expanded just 1.1 percent annualized in Q2 2026, missing forecasts due to lackluster household spending and business investment.

The Nikkei average surged 0.74 percent to 69,220.25 while the broader Topix index settled 0.31 percent lower at 4,184.11.

South Korean markets were closed for the Liberation Day holiday.

Australian markets ended lower after disappointing earnings updates from the likes of NAB and JB Hi Fi. The benchmark S&P/ASX 200 dropped 0.46 percent to 9,073.20, extending losses for a fourth consecutive session to reach a two-week low.

The broader All Ordinaries index ended 0.37 percent lower at 9,279. National Australia Bank shares slumped 4.6 percent after the lender flagged a slowdown in home loan applications. JB Hi Fi plummeted 12.3 percent as the consumer electronics retailer warned of weaker trading at the start of fiscal 2027.

New Zealand's benchmark S&P/NZX-50 index fell 0.96 percent to 13,721.98, closing near a four-week low after data showed services activity in the country stayed flat in July, signaling fragile growth.

A2 Milk shares slumped 5.7 percent after the company reported a 44 percent drop in its full-year profit.

U.S. stocks fell slightly on Friday after rising over the previous two sessions.

Economic concerns took center stage as July retail sales dropped by the largest margin in over a year and a measure of consumer sentiment fell for the first time in three months amid worries about worsening business conditions and the rising cost of living.

The Dow and the S&P 500 both slid around 0.2 percent while the-heavy Nasdaq Composite shed 0.3 percent.