Mixed Asian Markets Amid Cautious Trading Before US Labour Day

Asian markets displayed mixed performance on Monday, with investors eyeing the upcoming US employment report and their economies' growth indicators. Japan's economy posted promising signs, while China's growth outlook dampened. US markets concluded the previous week positively, driven by promising economic reports and the anticipation of interest rate cuts.

Asian shares exhibited mixed results in cautious Monday trading, ahead of the US Labour Day holiday, which will see stock exchanges closed.

Investors are anticipating the US employment report's release on Friday to gauge the strength of the American economy. Japan's Nikkei 225 saw a 0.4% rise, buoyed by increased capital spending by Japanese companies in Q2.

After stagnation, Japan's economy shows signs of recovery, with revised GDP data expected next week. Meanwhile, Australia's S&P/ASX 200 fell 0.3%, South Korea's Kospi edged up nearly 0.1%, Hong Kong's Hang Seng dropped 1.3%, and the Shanghai Composite dipped 0.5%.

China's growth outlook weakened, with August manufacturing PMI falling from 49.4 to 49.1, below market expectations. Conversely, Wall Street ended last week on a high, with the S&P 500 rising 1%, and the Dow Jones and Nasdaq Composite recording gains.

Encouraging US economic reports on inflation, consumer spending, and income suggest a possible Federal Reserve interest rate cut, the first in over four years. The Commerce Department reported a 0.5% increase in spending and a 0.3% rise in incomes from June to July.

Bond yields were varied, with the 10-year Treasury yield increasing to 3.92%. Energy trading saw benchmark US crude fall to $73.08 a barrel, and currency trading had the US dollar slightly dip against the Japanese yen.

(With inputs from agencies.)