Bloomberg reports, "A private gauge of Chinese manufacturing unexpectedly fell to the lowest in 15 months, reinforcing the need for further policy support in an economy that had seen signs of stabilization recently. Regional stocks fell. The preliminary Purchasing Managers' Index from Caixin Media and Markit Economics was at 48.2 for July, down from 49.4 the previous month and worse than all 16 forecasts in a Bloomberg survey, where the median estimate was for an increase to 49.7. Numbers below 50 indicate contraction. The release weakens the outlook for the world's second-largest economy, putting pressure on authorities to do more to meet Premier Li Keqiang's 2015 growth target of about 7 percent. A slump in property investment and the recent stocks rout underscore the risks that remain even after policy makers stepped up support in recent months."

Reuters reports, "China repeated a call Friday for talks with Japan over joint development of gas and oil resources in contested waters in the East China Sea. The offer comes days after Japan disclosed a map and photographs of what it said were 16 Chinese marine platforms close to Japan's side of a geographical median line that it contends should mark the border between their exclusive economic zones. Japan has yet to respond to China's latest call. China said it was justified to conduct oil and gas exploration in its exclusive economic zone, the Foreign Ministry said on its website, claiming it has been developing the same areas since the 1970s and Japan has only raised objections in recent years. Japan has long expressed concern that the rigs could siphon gas out of undersea structures that extend to its own side."