China woes dampen Asian stock market optimism

Asian markets were mixed Monday, with optimism over an expected US interest rate cut offset by worries over the Chinese economy following the release of more disappointing data.

After a strong finish on Wall Street, where all three indexes ended sharply higher, Asia struggled to match up.

Tokyo, Sydney, Singapore, Seoul, Mumbai, Manila, Wellington and Jakarta rose but Hong Kong, Bangkok and Taipei fell.

London, Paris and Frankfurt all fell at the open.

Figures on Friday showed the Federal Reserve’s favoured gauge of inflation – the personal consumption expenditures index fell in line with forecasts in July, setting the bank up to ease monetary policy this month.

Focus is now on the release of the closely watched non-farm payrolls report, which will provide the latest snapshot of the world’s top economy.

While a cut has been priced in, the data could determine how big it will be, with analysts saying another big miss to the downside could prompt officials to slash rates by 50 basis points, rather than the expected 25.