Asian stock traded slightly higher. Concerns over escalating violence in Iraq weighed on stock markets.

There are still concerns over the health of China's economy despite yesterday's Chinese economic data. China's HSBC manufacturing purchasing managers' index rose to 50.8 in June from 49.4 in May. Analysts had expected an increase to 49.7.

The Chinese leading index declined 0.7% May, after a 0.9% gain in April. This data was released today.

Investors are awaiting Prime Minister Shinzo Abe's press conference later in the day. Mr. Abe should unveil the reform plans of his "third arrow" strategy.

Indexes on the close:

Nikkei 225 15,376.24 +6.96 +0.05%

Hang Seng 22,880.64 +75.83 +0.33%

Shanghai Composite 2,033.93 +9.57 +0.47%