Asia: Chinese stocks higher despite disappointing data

Asian stocks started the week mixed following disappointing data from China and some optimistic signs in Japan.

The Shanghai composite index closed 2.17% higher despite Chinese exports falling for a third consecutive month in May, according to the National Bureau of Statistics. The data signalled sluggish demand from the world's second largest economy.

Exports were down 2.5% in May up from a 6.4% decline on the month before, which Capital Economics analysts said to be better than expectations.

"This appears to reflect a broad weakening in global demand with the exports of most emerging markets having also disappointed recently," they said.

Imports fell to a seven-month low, down 17.6%, dampening hopes that recent policy support may have driven a rebound in domestic demand.

As a result, trade surplus rose to $59.49bn, close to the record $60.5bn surplus hit in February.

The Nikkei 225 closed down 0.02% even though Japan's first quarter gross domestic product (GDP) was revised significantly higher, which offered some optimism for 2015.

The economy grew ahead of forecasts by 1% in the first quarter and 3.9% year-on-year.

Craig Erlam from Oanda said: "The revision was mostly driven by higher capital spending which will be music to the ears of the government.

"The question now is whether this can all lead to higher wages and inflation, which has been notoriously hard to come by."

In company news, Japanese car manufacturer Toyota lost 1.11% and Nissan was down 0.53% after reporting a decline in sales of its Leaf electric vehicle in May.

Elsewhere in Australia, the ASX index was closed for a public holiday.

In the commodities sphere, gold hit an 11-week low stateside on Friday, as the dollar rose on positive US employment data. Data from China also hurt the base metals markets, which remained mixed with contrasting fortunes for various metals.