HONG KONG - Asian markets were mixed Monday and the euro slipped as a rally sparked by last week's eurozone deal fizzled out, with weak manufacturing data from China also weighing on investors.

Oil prices also fell as doubts crept in about implementing the deal struck at a key EU summit last week aimed at stemming the long-running eurozone debt crisis.

After rising in early trade, Tokyo edged down 0.04 per cent, or 3.30 points, to close at 9,003.48, while Seoul closed down 0.13 per cent, or 2.36 points, at 1,851.65.

Shanghai was flat, edging down 0.03 per cent in afternoon trade, but Sydney was up 0.94 per cent, or 38.4 points, to close at 4,133. Hong Kong was closed for a public holiday.

"The European Summit concluded without agreement on the long-term details (fiscal union etc), but did offer relief for Spain and Italy with direct bank funding" from the eurozone bailout fund, the National Australia Bank said in a note.

It added the agreement was "positive, but there are questions about how long this takes to establish".

European leaders agreed to use emergency funds to support ailing banks directly and to ease pressure on governments' debt burdens through bond purchases. They also agreed on $150 billion in fresh funds to boost growth.

Fresh bad news from China tempered investors' enthusiasm Monday, with two surveys showing that manufacturing activity fell in the world's second-biggest economy.

Official data released Sunday showed manufacturing activity fell to a seven-month low in June.

The official purchasing managers' index (PMI) slipped to 50.2 last month from 50.4 in May, industry group the China Federation of Logistics and Purchasing said.

On Monday, the rival HSBC PMI, which focuses more on small- and medium-sized companies, showed manufacturing activity contracting for the eighth consecutive month in June.

The bank's index fell to 48.2 in June from 48.4 in May, according to an HSBC statement. Its preliminary reading for June was 48.1.

The PMI data is "not horrible, but it isn't showing a rebound," Gigi Chan, manager of Threadneedle's $100 million China Opportunities Fund in Singapore, told Dow Jones Newswires.

"Some people had hoped that some of the stimulus might have kicked in." On Friday, world stock markets, the euro and oil all jumped after the EU summit in Brussels.

Asian markets posted gains of between 1.0 and 2.0 per cent, and European markets rose even more sharply, with Milan rocketing 6.6 per cent, and Madrid and Athens both surging 5.7 per cent.

In the US the Dow jumped 2.2 per cent and the Nasdaq 3.0 per cent.

On currency markets in afternoon Asian trade, the euro eased to $1.2624 and 100.52 yen from $1.2654 and 101.02 yen in New York late Friday. The dollar was quoted at 79.55 yen.

On oil markets, crude slipped on the weak data from China, the world's biggest energy consumer, and profit-taking after Friday's rises.

New York's main contract, light sweet crude for August delivery, fell $1.18 to $83.78 a barrel in the afternoon and Brent North Sea crude for delivery in August shed $1.45 to $96.35.

Gold rose to $1,592.41 an ounce at 0730 GMT, compared with $1,579.62 an ounce late Friday.