©Reuters
Investing.com — Sentiment remains tense ahead of this week's key economic data as Japan's Nikkei Stock Average retreats from its all-time high, with most Asian stocks trading flat to low on Monday. It has changed.
Local markets received a moderate lead from Wall Street as U.S. stock indexes closed modestly lower on Friday. U.S. stock futures are also struggling in Asian trade as a flurry of Federal Reserve speakers and inflation data are released later this week.
Japan's Nikkei Stock Average falls from record high
Japan's index was Asia's worst performer, falling 0.7% as investors locked in recent highs. The comprehensive index also fell by 0.7%.
Last week, the Nikkei Stock Average hit a new high despite the Bank of Japan's first policy in 17 years. But prospects for further tightening of Japan's monetary policy weighed on the index in recent trading, especially as some data showed rising inflation.
Inflation figures for the Japanese capital are expected to be released later this week and are likely to be factored into the Bank of Japan's outlook.
Chinese stocks flat on US concerns and positive government signals
China and the index each fell 0.1% on Monday, a sharp decline from the previous session, amid growing concerns that the United States will impose further export restrictions on the country, particularly in the technology sector.
The idea comes as the Chinese government has ordered government agencies to stop using chips from Intel Corporation (NASDAQ:) and Advanced Micro Devices (NASDAQ:), and Microsoft's (NASDAQ:) Windows operating system will also be exempted. This was made worse by reports indicating that this was the case.
Chinese stocks fell on Friday after U.S. officials suggested some Chinese chip makers would ignore U.S. trade laws in 2023. The idea could lead to tighter U.S. regulation of Chinese tech companies.
Many of China's major tech stocks posted sharp declines on Monday, but gains in other sectors offset the declines. The Hong Kong index rose 0.3%.
Food delivery app Meituan (Hong Kong:) was one of the Hang Seng's biggest gainers, rising about 8% after the company reported better-than-expected quarterly profits.
Chinese officials also made positive comments about economic and industrial plans, but gave no clear indication of plans for further stimulus.
Most other Asian markets slumped. South Korea fell 0.1%, focusing on data to be released later this week.
Southeast Asia led the loss with a decrease of 0.5%.
Australian shares were an outlier, rising 0.6% on strength from large mining and banking stocks. Key Australians will also be in action later this week.
Indian markets were closed due to the holiday.
