Asia-Pacific stocks fell even after manufacturing data out of China bounced back to expansion territory.
In Japan, the Nikkei 225 lost 97.74 points, or 0.3%, to 31,759.88.
Sentiment of Japan’s big manufacturers improved to a score of 9 in the third quarter, up from 5 in the previous three months, the closely-watched central bank tankan survey showed.
The Bank of Japan announced on Monday said it will be increasing its bond purchases at Wednesday’s auction, as a spike in government bond yields tests the central bank’s resolve to defend its yield curve control policy.
The BOJ will conduct an unspecific amount of additional purchases of Japanese government bonds with tenures of more than five years and up to 10 years.
Yields on 10-year Japanese government bonds hit as much as 0.775% Monday, its highest since September 2013.
CHINA
Markets in Korea, Hong Kong and Shanghai were shuttered for holiday.
China’s factory activity in September expanded for the first time since April, according to official data over the weekend. China’s PMI climbed to 50.2 in September from 49.7, beating Reuters’ expectations of 50.0.
In other markets
In Taiwan, the Taiex index resumed after a long weekend to gain 203.57 points, or 1.2%, to 16,557.31.
In Singapore, the Straits Times Index subtracted 8.55 points, or 0.3%, to 3,208.86.
In New Zealand, the NZX 50 dropped 53.14 points, or 0.5%, to 11,243.29.
In Australia, the ASX 200 dipped 15.43 points, or 0.2%, to 7,033.21.
