China share indexes generally rose Monday as passable factory activity in January pointed to a continued economic recovery. However, increased domestic restrictions to combat COVID-19 had a cooling effect.
The Shanghai Composite index was last up 0.1% at 3,486.46 points. China's blue chip CSI300 index was up 0.52%.
China's factory activity grew in January but was at its slowest in five months after a wave of domestic coronavirus infections prompted lockdowns. A purchasing managers' index issued by business magazine Caixin declined to 51.5 from December's 53 on a 100-point scale on which numbers above 50 reflect activity expanding. A separate PMI by the official statistics agency showed similar weakening.
The data suggests China's rebound "is leveling off," Julian Evans-Pritchard of Capital Economics said.
However, shares in silver mining and silver trading companies rose as the price of the metal rallied.
Shares in listed companies linked to China's HNA Group fell Monday after the conglomerate said its creditors had applied for its bankruptcy and that nearly $10 billion had been embezzled by shareholders of three of its units. Hainan Airlines shares fell 9.8% and HNA Innovation shares fell 4.97%.
In Hong Kong the Hang Seng Index rose 1.9% to 28,822.61 points.
Other indexes around Asia benefited from coronavirus vaccine maker AstraZeneca's agreement to increase supplies to Europe. Stock gauges in Tokyo and Seoul advanced. Stock prices were flat in Singapore but gained in Taiwan and Indonesia.
Markets were rattled by AstraZeneca's announcement it would supply the European Union with fewer than half the promised doses. That prompted the EU to impose export controls. On Sunday, AstraZeneca promised to increase European supplies and start delivery earlier.
"Concerns around the pandemic seemed to return in full force as vaccine distribution and efficacy issues reemerged even with transmissions gaining momentum," said Mizuho Bank in a report.
Investors have bid up stocks in expectation the rollout of coronavirus vaccines would allow global business and travel to return to normal. But that optimism has been dented by new infection spikes and disruptions in vaccine deliveries.
On Sunday, the EU announced AstraZeneca has agreed to supply 9 million additional doses of its coronavirus vaccine to Europe.
The new target of 40 million doses by the end of March is still only half what the British-Swedish company had originally aimed for before it announced a shortfall owing to production problems. The EU is behind the U.S. in vaccinating its 450 million people.
Investors also are watching negotiations in Washington over President Joe Biden's proposed $1.9 trillion economic aid package. Hopes for aid, along with the Federal Reserve's pledge to keep low-cost credit plentiful, have carried the S&P 500 and other main indexes to record highs.
On Friday, Wall Street's benchmark S&P 500 index lost 1.9% after GameStop, a video game vendor, and some other shares that were expected to decline were sent soaring by day traders. Other investors said hedge funds that bet against those stocks were losing money and selling other shares.
In energy markets, U.S. crude rose 18 cents to $52.38 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 14 cents Friday to $52.20. Brent crude gained 32 cents to $55.37 per barrel in London. It advanced 35 cents the previous session to $55.88.
The dollar declined to 104.68 yen from 104.75 yen. The yuan was quoted at 6.4605 per dollar, 0.47% weaker than the previous close of 6.43.
