Chinese stocks improved on Monday after data on June manufacturing came in better than forecast and reached its highest point in three years.

The CSI 300 Index, which follows China’s largest companies listed in Shanghai and Shenzhen, rise 0.5% on Monday to come out of a four-month low and build on Friday’s 2% gain, the South China Morning Post reported. Hong Kong's financial markets were closed for a holiday.

Japan's Nikkei 225 edged up 0.1%, while South Korea's Kospi gained 0.2% yet Australia's S&P/ASX 200 declined 0.2%.

The Caixin/S&P Global manufacturing purchasing managers' index (PMI) improved from 51.7 in May to to 51.8 in June to set the fastest pace since May 2021 and beat analysts' forecasts of 51.2, according to the Morning Post.

The upbeat private data quelled concerns following official PMI data, which came in at 49.5 in June and was unchanged from May, according to National Bureau of Statistics data released on Sunday. A reading above 50 indicates expansion of activity, while a reading below suggests contraction.

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Property developer stocks went up in mainland China on hopes that a positive economic climate would entice buyers back to the real estate market.

Poly Developments and Holdings Group Co., Ltd. jumped 6.2% to 9.31 yuan and China Vanke Co. Ltd. rallied 5.2% to 7.29 yuan. Chip designer Cambricon Technologies rose 3.1% to 204.84 yuan and electronics product maker Foxconn Industrial Internet (601138.SS) ticked up 2.2% to 28 yuan.

Renewed market intervention efforts from "the national team" as indicated by a surge in net assets of the nation's biggest exchange-traded funds has also buoyed sentiment.

A total of 51.1 billion yuan (US$7 billion) came into the market through CSI 300 ETF in the week ended June 28 after the Shanghai Composite Index slipped below the 3,000 psychological level, Morning Post reported , as cited in state-run Securities Times on Monday, Morning Post reported.

Price Action: Alibaba Group Holding Limited ( BABA ) rose 0.24% to $72.17, Baidu, Inc ( BIDU ). gained 0.47% to $81.89 and NIO Inc. ( NIO ) improved 4.84 % to $4.36.

KraneShares CSI China Internet ETF ( KWEB ) gained 0.43% as iShares MSCI China ETF ( MCHI ) rose 0.62% and iShares China Large-Cap ETF ( FXI ) went up 0.54%.

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