SINGAPORE — Shares in Asia-Pacific looked set for a lower start Monday, with data released over the weekend showing Chinese factory activity contracted in April.

Futures pointed towards a lower open in Japanese stocks. Chicago: The Nikkei futures contract for Nikkei was at 26,740. Nikkei 225Last close: 26,847.90

Australia stocks were expected to get a slower start with the SPI futures contract trading at 7,315. That is in comparison to the S&P/ASX 200’sLast closing at 7.435.

The weekend’s Chinese economic data could have an impact on Monday’s regional investor mood. China’s industrial activity declined at an even faster pace in April, as Covid lockdowns impacted production.

According to data released by the National Bureau of Statistics, April’s official Manufacturing Purchasing Managers’ Index fell to 47.4, a second consecutive month of contraction after March’s reading of 49.5.

PMI readings are separated by 50 points. This marks growth and contraction. PMI readings show month-on-month contraction or expansion.

Private survey data also revealed a contraction in Chinese factory activity. The Caixin/Markit manufacturing PMI came in at 46. This is down from 48.1 the month before.

Rodrigo Catril, National Australia Bank’s CEO wrote that Omicron and China’s government’s zero covid policy are the major culprits of China’s April activity decline. He also noted that this note was a result of the disruption to supply chains and halting production.

Catril, an analyst at Catril said that “a sharp Chinese economic slowdown during the second quarter is still a realistic outcome and if history can be trusted, then global hit to growth will follow shortly thereafter.”

This data comes as mainland China is struggling with its worst Covid infestation since 2020.

Monday is a holiday in Hong Kong, Taiwan, Singapore, and mainland China.

It U.S. dollar indexAfter a jump of levels below 102.4,, which measures the greenback’s value against a basket its peers, stood at 103.191.

It Japanese yenThe dollar traded at 130.02 dollars, which is still lower than the levels of below 128 last week. The Australian dollarIt was 0.7069, a drop from $0.714 during the previous week.