Asia Stocks Mostly Lower After China Data

Hong Kong’s Hang Seng Index  lost 0.1%, while the Shanghai Composite Index  declined 0.5%.

South Korea’s Kospi  fell 0.3%, and Australia’s traded down 0.1%.

However, Japan’s Nikkei Stock Average  rose 0.6%, helped by strength in auto makers, among others.

Data out from China on Monday showed an in-line rise in consumer prices in September and a sharper-than-expected drop in producer prices. Read: China September consumer prices rise

Those figures followed weekend data showing China’s trade surplus for September and money-supply data exceeded economist expectations, while new bank lending fell below consensus expectations and preceded Read commentary: China’s economy seeks solid ground.

The mixed signals had left investors “nonplussed,” CommSec economists said.

Attention now turns the rest of the data due this week, notably Thursday’s China’s third-quarter gross domestic product release.

“If economic growth prints close to market forecasts of 7.4%, then the authorities may maintain their guarded approach about the need to stimulate the economy,” they said.

Metal firms were among the worst performers in Shanghai on Monday, with Aluminum Corp. of China Ltd.  down 1.6% and Jiangxi Copper Co.  losing 1.5%.

In Hong Kong, Aluminum Corp.   added 0.3%, while Jiangxi Copper’s H-shares    edged up 0.5%.

Corporate updates took several companies sharply lower in China, with ZTE Corp.   falling 15.2% in Hong Kong and 10% in Shezhen, after the firm forecast a third-quarter net loss, in part due to delays for some of its international projects.

Belle International Holdings Ltd.  , dropped 4% in Hong Kong after reporting same-store sales growth for its women’s footwear business slowed to 2.8% year-on-year in the third quarter.

With the European Union set to start a two-day summit on Thursday “lack of progress in the euro zone towards a bailout in Spain and the distribution of Greece’s next loan tranche will once again restrain any positive tone to markets, leaving most asset markets within ranges,” said Credit Agricole strategists.

Wall Street had closed mostly lower Friday, as worries over Europe offset a rise in U.S. consumer confidence to its highest level in five years. Read: U.S. stocks end worst week in four months

Among notable Asia movers Monday, Softbank Corp.   extended Friday’s tumble with another 6.1% decline Monday.

The firm will likely pay $20 billion for a 70% stake in U.S. wireless major Sprint Nextel Corp. , under a deal reached between the two companies which may be disclosed as early as Monday, according to reports. Read: Softbank reportedly to pay $20 billion for Sprint stake

On the upside in Tokyo, Renesas Electronics Corp.    jumped 12.9% on separate reports that a previously tipped public-private consortium including some of Japan’s top corporations was set to bid for the struggling chip maker.

Machinery firm Komatsu Ltd. climbed 4.3% after the Nikkei reported without citing sources that the firm’s fiscal-year operating profit is expected to fall 17%, which would meet company estimates.

Autos were also strong, as Honda Motor Co.    advanced 4.4%, Toyota Motor Corp.    rose 2.1% and Nissan Motor Co.   climbed 1.4%.

UBS started coverage on the sector on Monday, rating Toyota and Honda at buy and Nissan at neutral, saying that the North American market is stronger-than-expected while some Asia markets are also firm.

Korean autos were weak, however, with Hyundai Motor Co.    down 2.2% and Kia Motors Corp.   also down 2.9%.

Data out over the weekend showed that auto production in South Korea fell 8.2% in September, with Hyundai and Kia losing production due to work stoppages.

Miners were the worst performers by sector in Australia, offsetting gains for defensive firms, after weakness for metal futures in New York on Friday extended into electronic trading in Asia on Monday.

Newcrest Mining Ltd.   dropped 2.1% in Sydney, with smaller rivals OceanaGold Corp.  and Perseus Mining Ltd.  down 3.8% and 2.5%, respectively.

Marketwatch