The Nikkei reduced its losses, concluding the day down by 1.24% at 42,188.79. Asia-Pacific markets exhibited a mixed performance on Monday as investors evaluated the manufacturing data for China in August. The metric registered at 50.5, showing an improvement from the previous month’s contraction of 49.5. Data released Sunday indicated that the country’s manufacturing PMI data registered at 49.4 in August, slightly up from 49.3 in the previous month.

Investors are evaluating the recent developments in the relations between India and China, following the agreement made by leaders from both nations that they are development partners rather than rivals, during a two-day meeting of the Shanghai Cooperation Organization regional security bloc. During his opening remarks at the summit, Chinese President Xi Jinping called on SCO members to enhance collaboration in artificial intelligence, while dismissing what he referred to as a “Cold War mentality.” Hong Kong’s Hang Seng index increased by 2.17% to 25,617.42, driven by significant gains from Alibaba Group, which surged 18.58%, CSPC Pharmaceutical Group, which rose 9.53%, and WuXi Biologics, which climbed 8.37%. In the meantime, the CSI 300 index in mainland China increased by 0.6% amid volatile trading, finishing at 4,523.71. Semiconductor manufacturers faced significant losses, with Advantest falling 7.92%, Disco Corp decreasing by 7.71%, and Socionext experiencing a drop of 6.32%. Meanwhile, Japan’s broader Topix index decreased by 0.39% to 3,063.19.

In South Korea, the Kospi index declined by 1.35%, closing at 3,142.93, whereas the small-cap Kosdaq decreased by 1.49% to finish at 785. Australia’s S&P/ASX 200 benchmark declined by 0.51%, settling at 8,927.70. In India, the benchmark Nifty 50 increased by 0.66%, and the BSE Sensex index rose by 0.6% as of 1:35 p.m. Investors were evaluating a ruling from a U.S. federal appeals court stating that the majority of President Donald Trump’s reciprocal tariffs are deemed illegal. On Friday, the U.S. Court of Appeals for the Federal Circuit determined that Trump exceeded his presidential powers by implementing tariffs on nearly all countries globally during his April 2 “liberation day” declaration. Stocks declined on Friday as fresh inflation data indicated that increasing prices remain a concern as we approach the new month.

The S&P 500 concluded the day down 0.64% at 6,460.26, yet it achieved its fourth consecutive month of gains. The Nasdaq Composite declined by 1.15%, closing at 21,455.55, whereas the Dow Jones Industrial Average decreased by 92.02 points, or 0.20%, ending at 45,544.88. The U.S. markets will be closed on Monday in observance of the Labor Day holiday.