The dollar was mixed in Asian trading on Monday as it faced pressure from data that showed US consumer spending was down in April although shoppers' confidence climbed.

The greenback gave up most of its early gains against the yen as Tokyo's Nikkei 225 stock index dropped more than three percent. The index is closely linked with yen trading as the unit's value affects the profitability of Japanese exporters.

But Credit Agricole said dollar strength was likely to continue.

"We expect USD/JPY downside to be increasingly limited and stick to the view that the pair will ultimately resume its uptrend," it said. Currency markets were also digesting news Monday that China's manufacturing activity shrank more than first reported in May, according to HSBC, confirming the first contraction in seven months.

In Tokyo afternoon trade, the dollar bought 100.46 yen, from 100.37 yen in New York late Friday, while the euro was at 130.68 yen from 130.44 yen last week.

Against the dollar, the European single currency was slightly stronger at $1.3009, from $1.2996 in US trading. On Friday the US Commerce Department reported that consumer spending dropped by 0.2 percent in April, the first monthly fall since May 2012. But the University of Michigan consumer confidence barometer rose to a better-than-expected 83.7, the highest since July 2007.

A US jobs report this week will be a key factor in whether the Federal Reserve begins to taper off its open-ended $85 billion a month asset-purchase programme aimed at supporting economic growth.

The euro faced pressure from data that showed the 17-nation bloc's unemployment rate hit a new record high of 12.2 percent in April, while retail sales fell in the leading economy Germany.

However European Central Bank chief Mario Draghi told a financial conference in Shanghai Monday that the bank expects a "very gradual recovery" in the crisis-hit eurozone to start later this year.

The ECB, which holds a policy meeting later this week, cut interest rates last month in an attempt to stimulate the eurozone's recession-hit economy.

The dollar was mixed against other Asia-Pacific currencies Monday.

It slipped to Sg$1.2592 from Sg$1.2617 late Friday, to Tw$29.94 from Tw$29.95, to 1,127.55 South Korean won from 1,128.90 won and to 42.22 Philippine pesos from 42.26 pesos.

The greenback also slipped to 56.44 Indian rupees from 56.50 rupees while it gained to 9,895 Indonesian rupiah from 9,803 rupiah and to 30.45 Thai baht from 30.18 baht.

The Australian dollar weakened to 96.28 US cents from 96.37 cents while the Chinese yuan fetched 16.38 yen from 16.43 yen.