Hong Kong - Asian markets edged up on Monday following a record close on Wall Street at the end of last week, while analysts said data indicating sluggishness in the Chinese economy could prompt fresh stimulus from Beijing.
The dollar maintained Friday's Wall Street gains above ¥104 despite increasing tensions between Russia and the West over Ukraine.
Tokyo closed up 52.01 points, at 15 476.60 and Sydney ended slightly higher, adding 3.9 points to 5 629.8.
Shanghai jumped 18.31 points, to 2 235.51 while Hong Kong was slightly higher, adding 10.03 points to 24 752.09.
Seoul closed marginally lower, giving up 0.68 points to 2 067.86.
China said Monday that its official purchasing managers' index (PMI) of manufacturing activity slipped to 51.1 last month. That is down from 51.7 in July; a more than two-year high, and the first decline since February.
Anything above 50 indicates growth and anything below suggests contraction.
The latest figure was just above the median 51.0 forecast in a survey of 10 economists by Dow Jones Newswires.
In a separate report, HSBC said its own August PMI came in at 50.2, well off the 51.7 seen the previous month.
However, while the figures were disappointing RBS economist Louis Kuijs said they could usher in more accommodating policy measures.
"Perceiving that its 7.5% (gross domestic product) growth target for 2014 is challenged, we expect the government to step up the roll out of measures to support growth," Kuijs said in a note.
Dealers track Ukraine tensions
US dealers provided a useful lead, despite worries about a possible military confrontation between Kiev and Moscow after Nato said about 1 000 Russian troops were in Ukraine.
The S&P 500, which ended above 2 000 for the first time last week rose 0.33% to a new record Friday, the Dow added 0.11% and the Nasdaq put on 0.50% to end at its highest level in 14 years.
While markets were up, investors are keeping an eye on events in Ukraine. Russian President Vladimir Putin on Sunday raised the stakes by calling for the first time for statehood to be discussed for the restive east of the former Soviet state.
The remarks came just hours after the European Union gave Moscow accused by the EU of direct involvement in the insurgency, a week to change course or face new sanctions.
Currency traders remained upbeat, supporting the dollar against the yen even though the Japanese unit is considered a safe bet in times of economic and political uncertainty.
In late Asian trade the greenback fetched ¥104.15, up from ¥104.06 in New York on Friday afternoon.
The euro bought $1.3133 and ¥136.78 against $1.3139 and ¥136.72.
On oil markets US benchmark West Texas Intermediate for October delivery eased 29 cents to $95.65. Brent crude for October dipped 20c to $102.99 in afternoon trade.
Gold traded at $1 286.98 an ounce at 13:55, from $1 285.00 late on Friday.
In other markets
Mumbai advanced 229.44 points, to end at 26 867.55 points. ABB India rose 10.23% to 1 083.15 rupees, while Unitech gained 9.20% to 23.75 rupees.
Bangkok added 3.72 points to 1 565.35.
Telecoms company Advanced Info Service fell 1.44% to 206.00 baht, while coal producer Banpu gained 2.33% to 33.00 baht.
Jakarta ended up 40.76 points, at 5 177.62.
Bank Negara Indonesia rose 0.47% to 5 375 rupiah, while Hero Supermarket fell 0.39% to 2 540 rupiah.
Singapore closed down 12.96 points, at 3 314.13.
United Overseas Bank rose 0.26% to Sg$22.99 while real estate developer Capitaland fell 1.21% to Sg$3.28.
Kuala Lumpur closed down 9.57 points, to finish at 1866.11.
Taipei gained 76.79 points, to 9 513.06.
Taiwan Semiconductor Manufacturing Co added 3.63% to Tw$128.5 while leading chip design house MediaTek added 3.1% to Tw$515.0.
Wellington fell 7.90 points, to 5 215.40.
Fletcher Building was down 0.87% at NZ$9.12 and Warehouse Group was flat at NZ$3.10.
Manila ended 0.46% higher, adding 32.60 points to 7 083.49.
Globe Telecom rose 5.06% to 1 891 pesos but Philippine Long Distance Telephone slipped 3.07% to 3 344 pesos.