Summary Some energy stocks rose as oil traded above $44 a barrel on hopes of producer action to control outp
HONG KONG (AFP) - Tokyo stocks fell Monday after hitting their highest levels for over two months in the previous session, as figures showed Japan s economy stalled in the second quarter.
But Chinese shares closed up solidly, spurred by hopes the government would soon launch a scheme to link trading on the Shenzhen exchange with the Hong Kong bourse.
Sydney, Wellington and Kuala Lumpur also saw gains, even after weak economic data from the eurozone and US on Friday left European and Wall Street stocks under pressure.
The oil price continued to climb -- trading above $44 a barrel in Asia on hopes crude producers would agree to freeze output at a meeting next month and ease a stubborn global supply glut.
In Japan, data showed growth in the world s third largest economy was flat at 0.0 percent quarter-on-quarter, missing economists predictions for a 0.2 percent expansion in the April-June period as weak exports and a fall in business spending held back activity.
"Today s data are quite disappointing," said Junko Nishioka, chief economist at Sumitomo Mitsui Banking.
"The situation is becoming tougher and tougher. There is the rally in the yen and worries about Japan s prospects in overseas markets. And so companies are becoming more pessimistic about making investments."
By the close Tokyo s index had slipped 0.3 percent despite finishing at its highest level since early June on Friday. However, embattled electronics maker Sharp bucked the trend, surging 10.4 percent on news it had completed a deal to be acquired by Taiwan s Hon Hai Precision, known as Foxconn.
Shanghai jumps
Hong Kong rose 0.7 percent, while Shanghai finished the day up 2.4 percent after the China Securities Regulatory Commission said on Friday that the Shenzhen-Hong Kong Stock Connect scheme would be launched this year.
China launched a landmark "stock connect" between Shanghai and Hong Kong in late 2014, which allowed investors to trade selected stocks on Shanghai s tightly restricted exchange and let mainland investors buy shares in Hong Kong.
Property developers in Shanghai also rose on hopes for more mergers and acquisitions in the sector, analysts said.
Investors appeared to shrug off official economic data last week showing slowing growth in the Asian powerhouse.
China is trying to restructure its economy to make the spending power of its nearly 1.4 billion people a key driver for growth, instead of massive government investment and cheap exports. The economy grew 6.9 percent in 2015 -- its weakest in some 25 years.
Sydney added 0.2 percent and Wellington advanced 0.3 percent but Jakarta fell 1.1 percent. Financial markets in Seoul were closed for a public holiday.
Bangkok was flat after figures released Monday showed Thailand s economic growth slowed in the three months to June, days after a string of bomb and arson attacks struck the crucial tourism sector.
Some energy stocks rose as oil traded above $44 a barrel on hopes of producer action to control output.
Oil futures suffered a bearish July but were boosted after Saudi Arabian oil minister Khalid al-Falih said Thursday that producers could use next month s OPEC meeting to discuss "any possible action" on stabilising markets.
In early European trade, London was up 0.2 percent, Paris added 0.5 percent and Frankfurt advanced 0.6 percent.
