Asian Shares Mostly Higher; China, Hong Kong Stocks Fall On Deflationary Woes

(RTTNews) - Asian stocks ended mostly higher on Monday despite lingering tariff worries, the threat of a U.S. recession and signs of deepening deflationary pressures in China.

The dollar began the week on a sluggish note after falling more than 3 percent last week against major rivals on concerns about tariffs and its impact on the economy.

U.S. President Donald Trump in a Fox News interview on Sunday declined to rule out the possibility of a recession following his tariff actions on Mexico, Canada and China.

"There is a period of transition, because what we're doing is very big. We're bringing wealth back to America," Trump told the "Sunday Morning Futures" program.

Gold edged up slightly after modest gains last week. Oil prices declined as lackluster inflation data from the leading importer, China, coupled with uncertainty surrounding the effects of U.S. trade tariffs left traders anxious about decreasing demand.

China's Shanghai Composite index fell 0.19 percent to 3,366.16 after an announcement of fresh targeted levies on Canadian goods over the weekend.

Additionally, data showed consumer prices in China have plunged to their lowest level in more than a year, highlighting persistent deflationary pressures in the world's second-largest economy.

Hong Kong's Hang Seng index tumbled 1.85 percent to 23,783.49, with property developers falling on concerns about China's economic recovery.

Japanese markets ended mixed after a choppy session. The Nikkei average rose 0.38 percent to 37,028.27 while the broader Topix index slipped 0.29 percent to 2,700.76.

Semiconductor-related shares advanced, with Advantest surging 3.7 percent and Tokyo Electron rising 1.7 percent. Technology investor SoftBank added 1.4 percent.

Seoul stocks closed higher, reversing losses from the previous session. The Kospi average rose 0.27 percent to 2,570.39 led by auto and finance stocks.

Australian markets eked out modest gains, with mining and gold stocks pacing the gainers. The benchmark S&P/ASX 200 edged up by 0.18 percent to 7,962.30 while the broader All Ordinaries index settled 0.16 percent higher at 8,191.70.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index jumped 0.94 percent to 12,515.97.

Shares of Fonterra Co-operative Group rallied 3.6 percent after the dairy giant lifted its FY25 earnings guidance, reflecting positive contributions from its consumer channel.

U.S. stocks closed higher on Friday but posted steep losses for the week on tariff-related concerns and fears the U.S. economy is heading toward a recession.

The tech-heavy Nasdaq Composite climbed 0.7 percent, the S&P 500 gained 0.6 percent and the narrower Dow added half a percent after Fed Chair Jerome Powell said that the U.S. labor market remains solid, and inflation is headed toward the Fed's goal of 2 percent per year.

Echoing concerns about President Trump's policies, Powell said the Fed is in no hurry to adjust rates and remains "focused on separating the signal from the noise."

Meanwhile, data showed non-farm payroll employment climbed by 151,000 jobs in February after rising by a downwardly revised 125,000 jobs in January. The unemployment rate edged up to 4.1 percent.