Asia stocks cautiously mixed, dollar tries to bounce

SYDNEY Asian equity markets turned mixed on Monday as US lawmakers struggled to craft a new stimulus plan amid a global surge in new coronavirus cases, though a contraction in crowded short positions gave the dollar a rare rebound. .

The sentiment was helped by a survey that showed China's manufacturing activity expanded at the fastest pace in nearly a decade in July, with the Caixin / Markit PMI at 52.8.

That raised Chinese blue chips 0.9%. MSCI's broader Asia-Pacific index of stocks outside of Japan was down 0.2%, though that was from a six-month high.

Japan's Nikkei added 2.1% courtesy of a pullback in the yen, while shares in South Korea held steady.

E-Mini futures for the S&P 500 rose 0.1%, while EUROSTOXX 50 and FTSE futures were little changed.

Investors were nervous about the lack of a new stimulus package in the United States with White House Chief of Staff Mark Meadows, who was not optimistic about coming to an agreement on a deal soon.