FX.co ★ Asian Shares Mostly Lower; Nikkei Hits New High

Asian stocks mostly declined on Monday, driven by nervousness about China's economic recovery and the unpredictable timeline for interest rate reductions in the U.S. Gold prices fell from a two-week high as the dollar made gains, in anticipation of a range of U.S. economic data due later in the week, inclusive of the Federal Reserve's preferred inflation index.

John Williams, President of Federal Reserve Bank of New York, indicated during an interview on Friday that the current direction of the economy would likely necessitate interest-rate cuts later in the year. Meanwhile, crude prices fell following ongoing global demand concerns.

Chinese markets, after an impressive nine-session streak of gains assisted by targeted measures to boost ailing markets, saw a significant dip. The Shanghai Composite index was down by 0.93 percent to 2,977.02, following the credit rating losses of eleven Chinese companies by Moody's Investors Service on Friday.

Ahead of this week's expected Chinese manufacturing data, Hong Kong's Hang Seng index closed 0.54 percent lower at 16,634.74. Japanese markets reached a fresh high, following Wall Street's record close on Friday. The Nikkei average and the broader Topix index experienced gains, rising 0.35 percent to 39,233.71 and 0.49 percent to 2,673.62 respectively.

Japanese trading companies Mitsubishi Corp and Mitsui & Co saw around 1.5 percent increase in their share price after receiving an endorsement from Warren Buffett in his annual shareholder letter. Seoul stocks dropped significantly on the announcement of a reform plan to enhance management and corporate governance of listed companies.

The Kospi average recorded a 0.77 percent drop to 2,647.08, as a program aimed to boost undervalued stocks failed to meet market expectations, causing Hyundai Motor, Kia Corp, and KB Financial Group to lose between 2-5 percent.

In Australia, markets witnessed a moderate rise although earnings results varied. Energy company Santos saw a decline of 5.3 percent on going ex-dividend. The S&P/ASX 200 slightly increased by 0.12 percent to 7,652.80, and the broader All Ordinaries index climbed 0.11 percent to finish at 7,908.10.

Ahead of the Reserve Bank of New Zealand (RBNZ) meeting on Wednesday, New Zealand's S&P/NZX-50 index closed marginally lower at 11,709.89. On Friday, U.S. stocks had a mixed finish as Federal Reserve officials expressed concern about hasty interest rate cuts, although the Dow and the S&P 500 achieved new record closing highs. Conversely, the tech-dominated Nasdaq Composite fell 0.3 percent.