Asian stocks put up a mixed performance on Monday, as traders digested a slew of Chinese data released over the weekend and tread cautiously ahead of the Federal Reserve's policy meeting this week.
Growth in China's fixed-asset investment and industrial production missed expectations in August, data from the National Bureau of Statistics showed on Sunday, suggesting further cooling in the world's second-biggest economy that will likely prompt the government to roll out more support measures.
Retail sales were the lone positive surprise, growing 10.8 percent in August from a year earlier, above forecasts of 10.5 percent.
"Further deceleration in investments and imports plunge remain worrying. This ups the likelihood of more China stimulus, but dampens the Fed jumping the gun," analysts at Mizuho Bank wrote in an e-mail note released early Monday.
"We expect the Federal Open Market Committee (FOMC) [to] signal an initial a measured tightening soon, but hold off a [September] rate hike, line with IMF and World Bank's reservations," the note added.
The World Bank's chief economist joined Christine Lagarde, managing director of the International Monetary Fund, in warning that a rate rise could trigger "panic and turmoil" in emerging markets, according to a report by the Financial Times last Tuesday.
Meanwhile, Wall Street finished higher last Friday, with the S&P 500 closing up 0.45 percent to post its biggest weekly gain since July. The Dow Jones Industrial Average and Nasdaq Composite advanced 0.63 and 0.54 percent respectively.