Asia stocks dip on Chinese manufacturing data; Nikkei down 0.38%

Forexpros - Asian stocks traded lower on disappointing Chinese manufacturing data, which sent investors selling and brushing off optimism stemming from U.S. Federal Reserve Chairman Ben Bernanke's Friday speech claiming the Fed won't rule out stimulus measures to spur U.S. recovery. 

During Asian trading on Monday, Hong Kong's Hang Seng Index was down 0.24%, Australia's S&P/ASX200 was down 0.03%, while Japan’s Nikkei 225 Index was down 0.38%.

The Chinese HSBC Manufacturing PMI disappointed on Monday, hitting 47.6 in August, a tenth successive month-on-month deterioration in Chinese manufacturing operating conditions and the lowest reading since March 2009. 

The news sent stocks falling in early Asian trading on Monday albeit in choppy trading, as the index sparked talk of monetary stimulus in China.

Fed Chairman Ben Bernanke said Friday the U.S. central bank remains poised to stimulate the economy if it doesn't pick up the pace of its recovery.

Bernanke's dovish comments sent stocks rising worldwide on Friday, as monetary stimulus measures tend to weaken the dollar and push up stock prices by flooding the U.S. economy with liquidity to drive down interest rates.

However, the rally was short-lived due to a lack of specifics addressed in the speech, which sent investors selling on worries Chinese manufacturing data signaled a cooling global economy.

Meanwhile, the European Central Bank may be closer to buying sovereign debt from countries like Spain and Italy to lower borrowing costs there, though details remain to be seen, which sparked a risk-off trading session.

Spain is widely expected to be ready to ask for a bailout, and markets are eager to see how such a move would fall in line with plans to buy Spanish and other sovereign bonds.

Meanwhile in Australia, retail sales fell unexpectedly in July.

In a report, Australian Bureau of Statistics said that Australian retail sales contracted 0.8% in July following a 1.2% increase in June, whose figure was revised up from 1.0%.

Analysts had expected Australian retail sales to rise 0.2% last month.

In Hong Kong, top decliners included Li & Fung, down 3.10%, Power Assets, down 2.74%, and Cathay Pacific Air, down 1.19%. 

In Australia, top decliners included Energy World Corporation, down 7.84%, Mirabella Nickel, down 7.14%, and Emeco Holdings, down 5.13%.

European stock futures indicated a mixed opening.

France's CAC 40 futures pointed to a gain of 0.03%, while Germany's DAX 30 futures pointed to a loss of 0.16%. Meanwhile in the U.K., FTSE 100 futures indicated a loss of 0.19%.

Dow Jones Industrial Average futures were down 0.24% while the S&P 500 futures were down 0.25%.

Later Monday in the eurozone, ECB President Mario Draghi is scheduled to testify before the European Parliament's Economic and Monetary Affairs Committee, in Brussels. 

Spain and Italy, meanwhile, will release official data on manufacturing activity.

U.S. markets will be closed for the Labor Day holiday.