HONG KONG Asian markets were mixed on Monday as investors set their sights on the release of key US inflation data due at the end of the week.
After last week's Federal Reserve projections for interest rates indicated it would cut three times this year, traders are optimistic about the outlook for equities.
However, figures showing the economy remains in rude health are keeping a lid on sentiment and raised concerns that the central bank might not be able to bring borrowing costs down as quickly as hoped.
Those concerns were echoed by Atlanta Fed chief Raphael Bostic on Friday, when he said he saw inflation remaining sticky and saw just one rate cut this year, instead of the two he had previously foreseen.
Eyes are now on the release of the personal consumption expenditures (PCE) index, the Fed's preferred gauge of inflation, with traders hoping for a reading that shows price gains slowing further.
The report follows recent data on consumer and producer prices, which came in higher than forecasts.
Still, Stephen Innes at SPI Asset Management said: "Investors have shifted their focus away from the exact number of rate cuts the Fed will implement this year or the timing thereof.
"What matters more is the clear signal that the trajectory of policy rates is downward, not upward, from here."
In early trade, Hong Kong, Shanghai, Sydney, Taipei and Wellington rose, but Tokyo, Seoul, Singapore, Manila and Jakarta were in the red.
The stuttering start to the week came after the Nasdaq chalked up a record for the third straight day.