Asia-Pacific stocks mixed; data shows China’s factory activity contracted again in May

SINGAPORE — Shares in Asia-Pacific were mixed in Tuesday trade as investors watched for market reaction to the release of official Chinese factory activity data for May. Oil prices rose after EU leaders agreed to ban 90% of Russian crude.

The Shanghai Composite in mainland China was close to flat while the Shenzhen Component dipped 0.196%. Hong Kong’s Hang Seng index traded 0.18% higher.

China’s official manufacturing Purchasing Managers’ Index for May came in at 49.6, an improvement over April’s reading of 47.4.

The May reading was above the 48.6 level expected from a Reuters poll but still below the 50-point mark that separates growth from contraction. PMI readings are sequential and represent month-on-month expansion or contraction.

The Nikkei 225 in Japan hovered close to the flatline while the Topix index declined 0.09%. Over in South Korea, the Kospi climbed 0.1%.

Australian stocks were lower as the S&P/ASX 200 fell 0.23%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded little changed.

Markets in the U.S. were closed on Monday for a holiday.

Oil prices traded higher in the morning of Asia hours, after European Union leaders agreed to ban most Russian oil for its invasion of Ukraine by the end of 2022.

The agreement would “effectively cut around 90% of oil imports from Russia to the EU by the end of the year,” European Commission President Ursula von der Leyen said in a tweet.

International benchmark Brent crude futures gained 0.62% to $122.43 per barrel. U.S. crude futures jumped 2.41% to $117.84 per barrel.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 101.616 — still off levels above 102 seen last week.