Asia stocks mixed after Wall St down, China manufacturing up

BEIJING (AP) — Asian stock markets were mixed Thursday after the U.S. economy contracted and China reported stronger factory activity.

Shanghai and Hong Kong gained, while Tokyo and Seoul declined. Oil prices advanced.

Wall Street's benchmark S&P 500 index edged down 0.1% on Wednesday after data showed the U.S. economy shrank in the first quarter amid high inflation and weakening consumer confidence.

Investors are uneasy about signs the biggest global economy might be in a recession due to interest rate hikes imposed to cool surging inflation.

“Equities demand could remain muted for at least the next four to six months as interest rate hikes work through the U.S. economy,” said Stephen Innes of SPI Asset Management in a report.

The Shanghai Composite Index rose 1.4% to 3,406.82 after an official monthly gauge of factory activity rose and new orders improved. The Hang Seng in Hong Kong gained 0.2% to 22,032.70.

The Nikkei 225 in Tokyo fell 1.4% to 26,394.77 after May industrial production slumped 7.2% compared with the previous month. That was the sharpest decline since the start of the coronavirus pandemic in early 2020 and largely reflected disruptions in China due to the pandemic.

The Kospi in Seoul shed 1.6% to 2,339.70 and Sydney's S&P-ASX 200 declined 1.1$ to 6,625.40.

India's Sensex opened up 0.1% at 53,081.17. New Zealand, Singapore and Bangkok advanced while Jakarta declined.

The S&P 500 slipped to 3,818.83 after official data showed economic activity contracted 1.6% at an annualized rate in the three months ending in March. That was the first contraction since the second quarter of 2020 in the depths of the pandemic.

The U.S. benchmark is down 7.6% for the month and 20% from its Jan. 3 peak.

The Dow Jones Industrial Average rose 0.3% to...