Asian Shares Mixed After China Inflation Data

(RTTNews) - Asian stocks ended Monday's session on a mixed note after data showed China's economy teetered on the brink of deflation in June, adding to the case for policymakers to launch more stimulus to boost growth.

The dollar gained in European trade, keeping gold and oil prices under pressure.

Chinese shares edged up slightly amid hopes for more stimulus measures and as U.S. Treasury Secretary Janet Yellen gave a positive assessment of bilateral ties between the U.S. and China.

The benchmark Shanghai Composite index inched up 0.22 percent to 3,203.70 while Hong Kong's Hang Seng index ended 0.62 percent higher at 18,479.72.

Chinese consumer price inflation remained flat in June while producer prices fell the most since December 2015, reflecting weak domestic demand - data from the National Bureau of Statistics showed earlier in the day.

Japanese stocks fell notably to extend losses for a fifth consecutive session as a stronger yen weighed on automakers. The Nikkei average dropped 0.61 percent to 32,189.73 while the broader Topix index ended 0.51 percent lower at 2,243.33.

Honda Motor, Toyota and Nissan ended down between 1.7 percent and 2.6 percent. Chip-related shares also lost ground, with Advantest, Tokyo Electron and Screen Holdings falling around 2 percent.

Seoul stocks closed lower amid signs that China's economy is slowing and the U.S. Federal Reserve may hike rates later this month. The Kospi average slipped 0.24 percent to 2,520.70.

Australian markets gave up early gains to end lower as investors awaited U.S. inflation data due later in the week for cues on future monetary policy.

The benchmark S&P/ASX 200 index fell 38.30 points, or 0.54 percent, to 7,004.0, marking its lowest level since March 28. The broader All Ordinaries index closed 0.51 percent lower at 7,206.90.

Weak iron ore prices weighed on mining stocks, with heavyweights BHP and Rio Tinto both falling over 1 percent. Gold miners climbed, with Newcrest Mining, Northern Star and Regis Resources rallying 1-3 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.56 percent to 11,912.73.

U.S. stocks declined on Friday to end lower for the week, as a mixed jobs report showing slower job growth for June but persistently strong wage growth and a slight drop in the unemployment rate heightened fears that the Fed may resume rate hikes later this month.

The Dow shed 0.6 percent, the S&P 500 edged down 0.3 percent and the tech-heavy Nasdaq Composite slid 0.1 percent.