Investing.com - Asian shares were mixed on Monday with investors in Australia relieved on likely averting a downgrade from the current AAA (triple A) rating and China calm despite investors nervous over events in the South China Sea.
The S&P/ASX 200 rose 0.65%, while the Nikkei 225 eased 0.06%.
Australia's government on Monday forecast its budget deficit at A$36.5 billion ($26.6 billion) in the current fiscal year, or 2.1 percent of gross domestic product (GDP), said Treasurer Scott Morrison announced in the country's Mid-Year Economic and Fiscal Outlook, lower than an original prediction of A$37.1 billion (2.2 percent of GDP) for the year ending June 30, 2017. However, outer years are less rosy.
In Japan, the trade balance for November came in at ¥153 billion in surplus, narrower than the ¥227 billion surplus seen. Exports fell 0.4% year-on-year and imports slumped 8.8%. On Tuesday, the Bank of Japan board is expected to stand pat on policy at its two-day meeting ending Tuesday as there have been no large external shocks to derail a modest economic recovery.
Separately, China reported house prices for November rose 12.6% year-on-year, a faster pace than a 12.3% gain the previous month. But month-on-month, new home prices rose 0.6% from October's 1.1% rise, suggesting efforts to rein in China's overheated property markets is paying off.
The Shanghai Composite Index fell 0.23%, while Hong Kong's Hang Seng Index edged down 0.95%.
The yuan rose against the dollar for the first time in four business days after the People's Bank of China set a stronger fixing at 6.9312 this morning compared with 6.9508 Friday.
The latest flareup appears resolved with China agreeing to return the US underwater drone that it seized in international waters earlier this week, the Pentagon said Saturday, but President-elect Donald Trump weighed in with a tweet telling Beijing to keep the prove it "stole."
Last week, U.S. stocks were lower after the close on Friday, as losses in the Technology, Basic Materials and Financials sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average lost 0.04%, while the S&P 500 index lost 0.18%, and the NASDAQ Composite index declined 0.36%.