Investing.com - Shares in Asia were mixed on Monday with Shanghai down sharply on market jitters, though Tokyo and Sydney gained after mixed data.
The Nikkei 225 gained 0.69% and the Shanghai Composite edged up dropped 3.39%. The S&P/ASX 200 rose 0.11%.
In Japan, provisional industrial production for January rose 3.7%, better than the gain of 3.3% seen month-on-month, for the first gain in three months. As well, retail sales fell 0.1%, weaker that the gain of 0.9% expected year-on-year for January and the third straight drop.
In Australia, the MI Inflation gauge fell 0.2% month-on-month in February, while business inventories fell 0.4% quarter-on-quarter for the fourth quarter and company gross operating profits dropped 2.8% quarter-on-quarter. Housing credit rose 0.5% in January. As well, private sector credit rose 0.5% month-on-month.
In China, the yuan fell against the dollar Monday after the People's Bank of China set a weaker fixing for a fifth consecutive session.
Adding to the weaker market, reports of a hot dealing in the property market over the weekend in Shanghai and nearby regions had investors worried about seesaw effects between the two markets. Investors are also worried the registration-based system for initial public offerings doesn't fit the Chinese stock market.
The yuan was last at 6.5482 against the dollar compared with Friday's official close price of 6.5372.
Hong Kong's Hang Seng Index was down 1.04%.
Last week, U.S. stocks were mixed on Friday as investors reacted to the highest annual increase in core inflation in more than three years and a slight drop in oil prices, placing the brakes on February's enormous rally.
On Friday morning, the U.S. Commerce Department reported that its Personal Consumption Expenditure (PCE) Index jumped by 1.3% in January from its level 12 month earlier, an improvement of 0.7 from December's reading. The Core PCE Index, which strips out volatile food and energy prices, rose by 0.3% from the previous month, extending monthly gains from December. On a yearly basis, Core PCE surged by 1.7% from its level in January, 2015, also 0.3% higher from December's reading.
Separately, the Commerce Department upwardly revised Real GDP growth in the fourth quarter to 1.0%, from initial estimates of 0.7%.
While the strong economic data could provide a boost to the major indices, it also bolstered the chances the Federal Reserve could raise short-term interest rates in the coming months as Core PCE inflation moves toward its targeted goal of 2%.
Any rate hikes this year are viewed as bearish for stocks, as investors exit their positions in equities in favor of higher yields in bond markets.
The Dow Jones Industrial Average lost 58.82 or 0.35% to 16,638.47, while the NASDAQ Composite index added 8.26 or 0.18% to 4,590.47, amid gains among technology and pharmaceutical stocks. The S&P 500 Composite index, meanwhile, fell 3.67 or 0.19% to 1,948.04, as six of 10 sectors closed in the red. Stocks in the Basic Materials industry led, while stocks in the Utilities sector lagged. The Dow and S&P 500 turned negative late in the session after crude futures pared earlier gains on Friday afternoon.