BEIJING - Asian stocks were mixed on Monday following a muted finish on Wall Street last week, with investors holding their breath ahead of key earnings results from US tech behemoths.
Wall Street ended slightly up on Friday after a relatively calm week as a wait-and-see mood took hold of markets ahead of earnings data from the likes of Amazon, Microsoft, Google parent Alphabet and Facebook owner Meta.
Traders will also be looking for clues about the US Federal Reserve's next steps on interest rates, with swaps markets suggesting they anticipate a peak around the corner, followed by a series of cuts in the coming months.
Analysts, however, warned that upcoming US data on growth, inflation and wages could see that forecast change.
Tokyo was up on Monday, as was Wellington, while Taipei was relatively flat. Hong Kong, Shanghai, Sydney and Seoul were all down.
Still, Stephen Innes of SPI Asset Management said in a note that as investors waited for clues, "counterbalancing forces in the global economy are helping to keep the ship sailing on an even keel".
"A remarkably resilient US labour market, robust China data, and the lack of other crises from regional banks have all helped to keep stocks range-bound," he added.
In China, however, the rebound following the end of growth-sapping zero-Covid policies is likely to cool, he said, relying now on higher income growth and improved consumer sentiment.
"So the easy part is done; now, the consumer will need to do the bulk of the heavy lifting," he said.
Also this week, investors will be watching important economic data from South Korea, Australia and the eurozone, as well as Bank of Japan chief Kazuo Ueda's approach as he chairs his first key policy meeting.