Investing.com – Most Asian shares traded between lows and lows on Monday as sentiment remained on edge ahead of this week’s key economic indicators and Japan’s Nikkei 225 index retreated from record highs.
Regional markets slightly outperformed Wall Street as U.S. stocks closed slightly lower on Friday. US stock futures are also weighing on Asian trading with a flurry of Federal Reserve speeches and inflation data due later this week.
Japan’s Nikkei falls from record high
Japan’s index was the worst performer in Asia, falling 0.7% as investors recorded recent record highs. The broader index also fell 0.7%.
The Nikkei hit new highs last week despite the Bank of Japan’s first gain in 17 years. But the prospect of Japan tightening monetary policy has weighed on the index in recent sessions, especially as data also showed rising inflation.
Inflation data for Japan’s capital will be released later this week and will likely impact the Bank of Japan’s outlook.
Chinese stocks fall amid US concerns and positive government signals
China’s indexes and indexes fell 0.1% each on Monday and were on sharp declines from the previous session amid growing fears that the US will impose further restrictions on exports to the country, especially in the technology sector.
This view was compounded by reports that Beijing had instructed government agencies to stop using chips from Intel Corporation (NASDAQ:) and Advanced Micro Devices Inc (NASDAQ:), and that Microsoft’s (NASDAQ:) Windows operating system was also to be pushed back to the background.
Chinese stocks fell on Friday after U.S. officials suggested that some Chinese chipmakers violated U.S. trade laws in 2023, an idea that could potentially lead to stricter U.S. restrictions on Chinese technology companies.
Shares of most of China’s biggest technology companies suffered extended losses on Monday, although gains in other sectors helped offset the declines. The Hong Kong index rose 0.3%.
Food delivery app Meituan (HK:) was among the top gainers on the Hang Seng, rising nearly 8% after its quarterly profit beat expectations.
Chinese officials also commented positively on their plans for the economy and industry, although they did not give clear signals about any further stimulus measures planned.
Most other Asian markets were subdued. South Korean shares fell 0.1% ahead of data due later this week.
led losses in Southeast Asia with a 0.5% decline.
Australian indices rose 0.6%, led by gains in heavyweight mining and banking stocks. A key Australian player will also be available later this week.
Indian markets were closed for the holiday.