Asian Shares Mostly Lower In Cautious Trade

(RTTNews) - Asian stocks ended lower on Monday after the release of weak lending and mixed inflation data from China.

U.S. rate worries persisted, and Israel forces advanced deeper into Rafah despite warnings from the U.S. and Egypt, further weighing on sentiment.

Also, media reports suggested that the Biden administration plans to raise tariffs on Chinese electric vehicle imports from 25 percent to 100 percent.

The dollar rose against its major rivals ahead of key U.S. inflation data and Fed Chair Jerome Powell's speech due this week that might shed additional light on the outlook for rates.

Gold dropped half a percent below $2,350 per ounce in Asian trading while oil prices were marginally lower ahead of an OPEC+ policy meeting on supply policy.

Mainland Chinese markets ended slightly as bank loan growth data disappointed, and reports suggested that the U.S. government plans to raise tariffs on a raft of Chinese exports.

Inflation data proved to be a mixed bag, with consumer price inflation rising for a third straight month in April, while producer price inflation continued to decline. The benchmark Shanghai Composite index slipped 0.21 percent to 3,148.02.

Hong Kong's Hang Seng index climbed 0.80 percent to 19,115.06 as Beijing ramped up plans to stimulate the economy.

China's finance ministry said today that it will start the long-awaited sales of long-term treasury bonds to help stimulate key sectors.

Japanese stocks ended marginally lower ahead of corporate earnings reports and Q! GDP data due to be released on Thursday.

The Nikkei average slid 0.13 percent to 38,179.46 after a rise in government bond yields as the Bank of Japan cut the amount of Japanese government bonds it offered to buy in a regular purchase operation. The broader Topix index settled 0.15 percent lower at 2,724.08.

Property group Mitsui Fudosan plunged 5.4 percent after its annual net forecast came in below expectations. Peer Mitsubishi Estate lost 4.1 percent. Medical equipment maker Olympus jumped 9.7 percent on share buyback news.

Seoul stocks ended little changed, giving up early gains. The Kospi average finished marginally lower at 2,727.21.

Australian markets also ended on a flat note. Banks led losses while mining stocks ended on a mixed note.

Mining heavyweight BHP rose 0.8 percent while Rio Tinto dropped 0.8 percent and smaller rival Fortescue Metals Group shed 0.6 percent after iron ore prices hit a more-than-two-week low on Friday.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index fell 0.88 percent to 11,652.16 after a survey showed activity in the country's services sector slumped in April.

U.S. stocks ended mixed on Friday as investors awaited comments from Federal officials for more clarity on the monetary policy path following recent data pointing to a cooling U.S. labor market.

In economic releases, a measure of U.S. consumer sentiment dropped to a six-month low in May due to growing anxiety about inflation, unemployment and interest rates, a survey showed.

The survey's reading of one-year inflation expectations rose to 3.5 percent from 3.2 percent in April.

The Dow edged up 0.3 percent to extend gains for the eighth consecutive session, marking its longest daily winning run since December. The S&P 500 added 0.2 percent while the tech-heavy Nasdaq Composite finished marginally lower.