Asian stocks eked out modest gains on Monday as investors reacted to in-line U.S. inflation reading, mixed Chinese data and the results of the first round of voting for the French National Assembly.
The yen struggled near 38-year lows after Japan downgraded GDP numbers for the March quarter. Oil prices climbed in Asian trading while gold was marginally lower.
The euro rose against the dollar as the first round of voting left Le Pen\'s National Rally looking short of securing a majority in parliament.
China\'s Shanghai Composite index jumped 0.92 percent to 2,994.73 after the Caixin Manufacturing Purchasing Managers\' Index (PMI) unexpectedly rose from 51.7 to 51.8 in June, hitting a three-year peak on strong production and stabilizing employment.
Investors shrugged off the results of an official survey of factory purchasing managers that showed manufacturing conditions remained in contraction for a second straight month.
Japanese markets edged up slightly after a survey showed sentiment among large Japanese manufacturers improved during the three months to June.
On the flip side, the government downgraded its estimate for growth in the first quarter of the year to -2.9 percent from -1.8 percent - darkening prospects for a fragile recovery.
The Nikkei average closed up 0.12 percent at 39,631.06, giving up most early gains. The broader Topix index settled 0.52 percent higher at 2,824.88.
Department store operator J.Front Retailing soared 14.7 percent and Takashimaya surged 11.1 percent after raising their annual profit forecasts.
Seoul stocks rose for a second day running, with the Kospi average rising 0.23 percent to 2,804.31 as a survey revealed South Korea\'s factory activity growth quickened in June to the fastest in 26 months.
Market heavyweight Samsung Electronics rose 0.4 percent ahead of its second-quarter earnings guidance.
Australian markets ended slightly lower despite clawing back some early losses. The benchmark S&P/ASX 200 dropped 0.22 percent to 7,750.70 due to interest-rate concerns and jitters over European political tensions.
The broader All Ordinaries index settled 0.27 percent lower at 7,992.30, with financials and tech stocks pacing the declines. Mining stocks gained as iron ore prices rose on optimism for Chinese stimulus.
Across the Tasman, New Zealand\'s benchmark S&P/NZX-50 index gained 0.61 percent to finish at 11,789.39.
U.S. stocks gave up early gains to end lower on Friday as PCE (Personal Consumption Expenditures) price index came in unchanged in May after ticking up 0.3 percent in April.
The annual rate of core inflation growth slowed to 2.6 percent, marking its lowest reading since March 2021 and reinforcing investor expectations for at least one interest rate cut later this year.
The Dow slipped 0.1 percent, the S&P 500 shed 0.4 percent and the tech-heavy Nasdaq gave up 0.7 percent as Treasury yields rose after the release of the data.