Hong Kong (CNN Business) Asian markets were mixed Monday as new US-China tariffs took effect and several countries reported economic data for the last month.

Shanghai Composite Index SHCOMP China'srallied 1.3% to close the day higher. It was lifted by defense and infrastructure stocks. Newly released economic figures were also unexpectedly positive.

The shipbuilding and aerospace industries were the best performers on the market. China has said it will showcase new equipment and weaponry at a military parade meant to celebrate the 70th anniversary of the founding of the People's Republic of China on October 1.

The defense sector is expected to outperform the broader Shanghai Composite Index this month, according to analysts at China Galaxy Securities, an investment firm.

Infrastructure shares also jumped. New private survey data released Monday showed China's manufacturing sector expanded in August to a five-month high.

Read More