Hong Kong---Shanghai and Hong Kong stocks rebounded Monday after last week's sell-off as an official gauge of Chinese manufacturing showed activity picking up last month, but Tokyo retreated after an 11-day rally.
The euro edged down as Greece's bailout reform talks plod on without an agreement in sight despite a deadline this week for it to repay some of its debts, fuelling fears of a default that could see it leave the eurozone.
Shanghai rose 1.40 percent and Hong Kong added 0.50 percent, but Tokyo shed 0.44 percent, Sydney sank 1.49 percent and Seoul dipped 0.97 percent. Singapore and Bangkok were closed for public holidays.
China's official Purchasing Managers' Index (PMI) of manufacturing came in at 50.2 for May, the strongest since November and the third consecutive month of expansion.
The reading, which is above the 50 point mark that separates growth from contraction, also showed demand increasing.
Chinese investors returned to buying Monday after the Shanghai index plunged almost seven percent over Thursday and Friday in response to a tightening of rules for margin trading. The market has surged about 120 percent over the past year on hopes Beijing will unveil a slew of easing measures to boost the economy.
"The stock market has consolidated and is likely to grow at a slower pace rather than just straight up," said Wang Zheng, the Shanghai-based chief investment officer at Jingxi Investment Management Co. "The stabilisation of the economy indicated by the PMI data has also helped the sentiment."
In Tokyo, the Nikkei edged lower on profit-taking after chalking up an 11th straight gain Friday on expectations the Bank of Japan will loosen monetary policy, while the yen sits around 12-year lows against the dollar.
On Thursday the dollar was at 124.13 yen against 124.12 yen late Friday in New York. The greenback briefly touched 124.46 Thursday, the highest level since December 2002.
The euro slipped to $1.0944 and 135.85 yen from $1.0991 and 136.42 yen.
Dealers are keeping tabs on the long-running talks between Greece and its creditors as they struggle to find an agreement on overhauling its bailout terms.
However, there are worries Athens will not find a deal that will unlock billions of euros it needs for a debt repayment on June 5.
The country's Prime Minister Alexis Tsipras on Sunday attacked its creditors for insisting on what he described as absurd reforms that have only held up progress in negotiations for a deal aimed at preventing a default.
On Wall Street the Dow lost 0.64 percent, the S&P 500 shed 0.63 percent and the Nasdaq dropped 0.55 percent.
On oil markets US benchmark West Texas Intermediate (WTI) for July fell 52 cents $59.78 a barrel, while Brent gained shed 51 cents to $65.05.
Gold fetched $1,190.25 compared with $1,190.33 late Friday.
APF
