Asian shares traded mixed on Monday in morning session as investors weighed the near-certain prospect of an interest rate hike in the US this month against heightened geopolitical risks in Asia after North Korea fired multiple ballistic missiles.
Japan's Nikkei 225 fell 0.51%, while the Kospi was down 0.09%. Australia's ASX 200 was up 0.15%, after January retail sales increased by 0.4% from the previous month which were in line with expectations from a Reuters poll.
Chinese stocks were resiliently higher, with Shanghai composite up 0.32% and Shenzhen composite added 0.3%. Hong Kong's Hang Seng index was up 0.21%.
North Korea fired multiple missiles off its east coast, which flew about 1,000 km, South Korea's military said, while Japan said three missiles landed inside its exclusive economic zone and that it would not tolerate the hermit state's provocative actions.
In a separate move, Chinese Premier Li Keqiang sounded a cautious note at the annual meeting of parliament that began Sunday, and said that China would expand its economy by around 6.5%, compared to the growth target of 6.5% to 7% set last year.
Meanwhile, South Korea's trade minister said that the government would strengthen its response to China's recent discrimination towards South Korea companies.
In company news, Rio Tinto was up 2.2% after the company said it had delayed bonuses to former chief executive Sam Walsh as authorities reviewed a questionable payment made to a consultant. BHP Billiton was up 1.5% even as a strike at its copper mine in Chile, the world’s largest, continued.
In Hong Kong, casino stocks pushed higher following data last week showing Macau casinos’ gambling revenue increased more than expected. Galaxy Entertainment climbed 1.4% while Sands China rose 1.2%. In China, the technology-focused Shenzhen Composite index was up 0.4%.
In Japan, financial and utilities stocks led the decline. Nintendo bucked the trend, rising as much as 3.4%, following the launch last week of its new Switch video game console.