Asia shares mixed, China cuts rates as data disappoints - Reuters.com

LONDON, Aug 15 (Reuters) - Global shares struggled to advance on Monday while investors digested news of an unexpected cut in Chinese interest rates as data pointed to faltering growth in the world's second largest economy, sending oil prices nearly 2% lower.

China's central bank cut key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.

The gains on Wall Street and steady growth figures for Japan helped the Nikkei (.N225) share average in Tokyo jump to its highest in more than seven months.

They've got a self imposed recession that they've created from the zero COVID policy," said Patrick Armstrong, chief investment officer at investment house Plurimi Group.

Quantitative tightening, I think, will begin in earnest in September and that's going to withdraw liquidity from the market," Armstrong said.

The Fed will publish minutes on Wednesday from its last rate-setting meeting, but investor hopes of them showing the central bank beginning to pivot on rate hikes could be dashed.

"I don't think (Fed Chair) Powell is going to say that, I don't think the minutes are going to indicate that," Armstrong said.

The cut in Chinese interest rates failed to stop Chinese blue chips (.CSI300) easing 0.13%, while the yuan and bond yields also slipped.

Gold was down 0.8% at $1,786, losing nearly all of its 1% gains last week.

The head of the world's top exporter, Saudi Aramco, said it was ready to ramp up output while production at several offshore U.S.