China's Shanghai Composite index bucked the cautious sentiment across Asia on Monday, surging nearly 5 percent to end at a two-week high.
Meanwhile, the rest of the region finished off the day's lows after getting a boost from the rally in the mainland, but the relentless decline in oil prices and less-than-stellar data from China over the weekend limited advances.
According to data released by the National Statistics Bureau on Sunday, China's producer prices fell 5.4 percent in July from a year earlier, compared with an expected 5.0 percent drop. It was the worst reading since October 2009 and the 40th straight month of price decline. Consumer inflation remained muted at 1.6 percent despite surging pork prices, in line with forecasts and slightly higher than June's 1.4 percent.
Meanwhile, exports tumbled 8.3 percent in July, marking their biggest fall in four months, as weaker global demand for Chinese goods and a strong yuan policy hurt manufacturers.
"We think this is all pointing to the necessity of further easing in China. Our official view is another [interest] rate cut and 100 basis points cut in [the] reserve requirement ratio (RRR) in the next few months," Malcolm Wood, chief investment strategist for Australia at Bank of America Merrill Lynch, told CNBC's "The Rundown."
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On Friday, Wall Street ended lower on the back of declines in oil prices and upbeat job growth data that was seen as putting the Federal Reserve on course for a potential rate hike in September.
The Dow Jones Industrial Average shed 0.27 percent to chalk up its seven straight session of declines, the worst losing streak since the summer of 2011. The S&P 500 and the Nasdaq Composite eased 0.29 and 0.26 percent, respectively.