Tokyo, Japan (BBN)-Asian shares traded mostly lower on Monday with positive economic data from Japan failing to inspire investors about growth in the world’s third largest economy.
Japan’s factory output rose 1.4 per cent in October from a month ago, marking the second consecutive monthly rise, but the figure fell short of forecasts, reports BBC.
Retail sales grew more than expected, up 1.1 per cent from a month ago.
However, Japan’s Nikkei 225 index was down 0.2 per cent to 19,847.03 points.
Investors were cautious about good economic news from Japan, because it fell into a recession in the third quarter.
But economists at research firm Capital Economics said the second monthly rise in industrial production following two months of contraction suggested the economy returned to growth in the fourth quarter.
“In particular, the rebound in core capital goods shipments last month suggests that business investment should start to recover this quarter,” Japan economist Marcel Thieliant said.
Investors were also cautious after mainland Chinese markets plunged more than 5 per cent on Friday over investigations into the country’s major brokerages.
But the Shanghai Composite index recovered some of those losses to trade up 0.8 per cent at 3,463.23
Hong Kong’s Hang Seng index was down by 0.7 per cent to 21,911.41, following the global trend as investors were looking ahead to US jobs data and a European Central Bank meeting later this week.
In Australia, the S&P/ASX 200 index was down 0.5 per cent to 5,177.50 as the resources sector was weighed down by rising costs for BHP Billiton from a dam disaster in Brazil.
The top miner’s shares were down 2.6 per cent.
Meanwhile, shares of electronics retailer Dick Smith plunged as much as 70 per cent after it said it would take a 60m Australian dollar ($43m; £28m) impairment on inventories after disappointing sales.
South Korea’s benchmark Kospi index was down 1.2 per cent to 2,004.59 after data showed industrial output posted a surprise decline in October.
Factory output fell by a seasonally adjusted 1.4 per cent from September, marking the fastest drop since May despite expectations of a rise.