Asia stocks mixed on soft Japan data, stimulus hopes; Nikkei down 0.04%

Investing.com - Asian stocks were mixed on Monday, caught in a tug-of-war between bears who sold on soft Japanese gross domestic product data and bulls who bought on sentiment weak data will prompt central banks to stimulate their respective economies, which would send stocks rising.

During Asian trading on Monday, Hong Kong's Hang Seng Index was down 0.12%, Australia's S&P/ASX200 was up 0.45%, while Japan’s Nikkei 225 Index was down 0.04%.

Earlier Monday, Japan reported its gross domestic product grew less than expected in the second quarter, expanding 0.3% according to preliminary figures, below market forecasts for 0.6% growth and well below the first quarter's rate of 1.3%.

The news prompted many investors to sell stocks on fears that the global economy was cooling, especially considering the numbers came right on the heels of disappointing data elsewhere.

China reported last week that its trade surplus narrowed unexpectedly in July, dropping to USD25.1 billion from a USD31.7 billion surplus.

Economists were expecting a USD35.1 billion surplus.

Meanwhile in Europe, the European Central Bank on Thursday trimmed its forecast for economic growth to 0.6% in 2013, down from 1% previously.

The ECB also forecast the economy to contract 0.3% this year, slightly worse than its previous forecast for a 0.2% contraction.

Weak data fueled talk that central banks, including the U.S. Federal Reserve, will move to stimulate their respective economies, which would weaken paper currencies, the dollar especially.

Federal Reserve officials have said they cannot rule out implementing a new round of asset purchases from banks, a stimulus tool known as quantitative easing that pumps liquidity into the economy to spur recovery, sending stocks up in the process.

European Central Bank President Mario Draghi has said monetary policy officials will do whatever it takes to bolster the economy in Europe as well.

In Hong Kong, top decliners included Tencent, down 2.45%, China Resources, down 1.83%, and Hang Seng Bank, down 1.70%.

In Australia, top gainers included Bluescope Steel, up 34.62% on news the company entered into a joint venture with Nippon Steel Corp, Downer EDI, up 11.54%, and Envestra, up 10.90%.

European stock futures indicated a lower opening.

France's CAC 40 futures pointed to a loss of 0.37%, while Germany's DAX 30 futures pointed to a loss of 0.36%. Meanwhile in the U.K., FTSE 100 futures indicated a loss of 0.32%.

Dow Jones Industrial Average futures were down 0.24% while the S&P 500 futures were down 0.29%.

Later this week on Tuesday, the eurozone will release data on industrial production as well as preliminary data on second quarter GDP, while Germany and France will unveil individual GDP reports.

Also on Tuesday, the ZEW Centre for Economic Research will publish a report on economic sentiment in Germany and throughout the single currency bloc.

In the U.S. that day, data on retail sales and producer price inflation will publish, followed by data on business inventories