By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Chinese stocks rose, and South Korean stocks retreated Monday, as cautious investors looked ahead to a slew of data expected to reaffirm an economic slowdown in China.

The Shanghai Composite climbed 1%, and Hong Kong's Hang Seng Index was up 0.3%, while Australia's S&P/ASX 200 eased 0.1%, and South Korea's Kospi fell 0.7%.

Japanese markets were closed for a holiday.

"We could see some nervous trading ahead of Chinese economic data today and a testimony to Congress by [Federal Reserve] Chairman [Ben] Bernanke later in the week," said Rivkin Securities global analyst Tim Radford, adding that the Chinese data "could arouse fears surrounding slowing economic growth."

China's gross domestic product expansion is expected to slow to 7.5% in the second quarter from the year-earlier period, compared with first-quarter growth of 7.7%, according to estimates compiled by Reuters. A slew of other data, including retail sales and industrial output for June, are also expected to ease from levels seen in May.

The gains in Shanghai and Hong Kong markets came as China's Xinhua news service -- which had late last week cited Finance Minister Lou Jiwei as tipping 7% growth for 2013 -- corrected its story over the weekend. The report said the minister had actually indicated the economy would expand 7.5% this year, in line with the government's official target.

Shares of Chinese banks edged higher in Hong Kong, with China Construction Bank Corp. (CICHY) rising 0.6%, and Industrial & Commercial Bank of China Ltd. (IDCBY) gaining 0.4%.

In Shanghai, China Citic Bank Corp. (CHCJY) added 1.9%, Bank of Communications Co. (BCMXY) rose 1.5%, and property major Gemdale Corp. added 1.9%.

The advance came after data released by the People's Bank of China after the market close on Friday showed a slowdown in June in total social financing -- the broadest measure of bank loans and bond issuances -- from the May level.

Asia's stock performance also followed a third straight week of gains for U.S. equities cemented on Friday, lifting the Dow Jones Industrial Average (DJI) and the Standard & Poor's 500 Index to record highs.

Banks paced the drop in Seoul, with Shinhan Financial Group Co. (SHG) losing 2%, and KB Financial Group Inc. (KB) shedding 1.7%.

In Sydney, weakness in the mining sector overwhelmed modest gains for other some stocks ahead of the Chinese data.

BHP Billiton Ltd. (BHP) fell 1.1%, and Fortescue Metals Group Ltd. (FSUMY) tumbled 3%, while the recently battered shares of Billabong International Ltd. (BBG.AU) further rebounding 5.2%.

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