Stocks in China lacked direction amid economic slowdown worries and a weak corporate earnings outlook. Investors looked forward to the release of key economic data, including retail sales, fixed-investment, and housing market updates. 

The yen is expected to resume its downward slide because of the yawning gap between the U.S. and Japan government bond yields.

Stocks in China lacked direction, and investors looked ahead to the release of industrial output, retail sales, and fixed-investment data later in the week.

After a week of historic swings in Tokyo trading, stock market indexes closed higher. The yen continued to weaken from its 8-month high as investors reassessed the Bank of Japan's monetary policy outlook. 

China stocks extended gains for the third consecutive session after global market volatility subsided. China's consumer inflation was positive for the sixth month in a row in July, and producer price inflation declined for the 22nd month in a row.

Stocks struggled to advance in Tokyo, and the yen drifted lower against the yen as calmness returned to global markets. The current account surplus widened in June after exports rose faster than imports. Some policy members urged a larger rate increase in the latest BoJ policy meeting. 

China indexes rebounded as foreign investors searched for bargains in the financial, advanced technology, and industrial sectors. China's inflation data on Friday is expected to highlight persistent deflationary trends and consumer demand growth weakness. 



Stock indexes in Japan extended gains, and the yen eased against the U.S. dollar after comments from deputy governor Uchida said the central bank would avoid raising rates in volatile markets.

China's imports advanced at a faster pace than exports, and trade surpluses shrank in July. Market indexes in Shanghai and Hong Kong rebounded from three-month lows after calm returned to global markets. 

Benchmark indexes in Tokyo recouped most of the previous session's historic losses after market sentiment stabilized. The yen weakened to 145 against the U.S. dollar.

China indexes struggled to shake off domestic economic growth worries amid weak consumer sentiment. Moreover, the property market may take more than a decade to rebound as new supply continues to flood the market. 

The two-week rise in the yen, supported by the unexpected increase in interest rates, plunged market indexes by 20% over the last three trading sessions. In a broad and deep sell-off, banks and tech stocks plunged between 25% and 40% in a three-day historic market rout. 

State Bank of India reported a rise in net income and a decline in gross non-performing assets in the June quarter. JK Tyre & Industries reported a sharp jump in its net income in the June quarter. Britannia said the modest increase in profit was driven by higher volume sales and improving profit margins.

The Nikkei 225 stock average plunged the most since Black Friday in October 1987 amid growing worries about the U.S. economy's health and the Bank of Japan's hawkish shift.



The Hang Seng index extended weekly losses to 1.6%, and the CSI 300 index dropped by 0.5% after Friday's global market sell-off sapped market sentiment.