Asian markets were mostly higher on Monday, as investors try to make sense of U.S. President Donald Trump's policy confusion
The Nikkei 225 Index gained 58.51 points to finish Monday at 18,976.71, after official data showed that wages in Japan fell in December, on an annual inflation-adjusted basis, for the first time in a year.
Officials said that the decline was caused by a rise in the cost of living, which outpaced nominal pay hikes
In Hong Kong, the Hang Seng Index recovered 219.03 points, or 1%, to 23,348.24
Since Trump's inauguration on Jan. 20, there has been a flurry of actions that run the gamut from immigration to financial deregulation to tighter border control.
Amid increased uncertainty, the market is caught between a situation of "Trump-flation", that is higher yields and stronger dollar, or "Donald Doubt," which sees a softer U.S. dollar and lower yields due to protectionism and dollar jaw-boning
The greenback also continued to slip against the yen, at 112.5 as the Australian dollar held steady at $0.7666.
Australian markets declined slightly. Government data showed that December retail sales fell 0.1% from the previous month, compared to a poll forecasting growth of 0.3%.
The National Australia Bank, one of Australia's "Big Four" banks, saw shares jump 0.8% to A$30.62 a share, after it reported a 1% decline in its first-quarter cash profit at A$1.6 billion ($1.23 billion U.S.), as costs overtook revenue.
CHINA
In Shanghai, the CSI 300 inched up 8.72 points, or 0.3%, to 3,373.21
Earlier, China's Caixin January services purchasing managers' index came in at 53.1, weaker than December's 53.4. Despite a slower pace of expansion, China's services sector remained strong with companies seeing a solid increase in orders
Markets are also watching geopolitical strain in the East Asian region, with U.S. Defense Secretary James Mattis' visit to South Korea and Japan late last week. Mattis emphasized the U.S.'s commitment to defend Japanese territory, including the cluster of islands that China claims.
China has hit back at Mattis's remarks, warning the U.S. not to infringe on China's claim of sovereignty over the islands known as Senkaku in Japan and Diaoyu in China.
In other markets
Markets in New Zealand were shuttered for holiday
In Taiwan, the Taiex Index hiked 14.97 points, or 0.5%, to 9,583.01
In Korea, the Kospi index eked up 4.5 points, or 0.2%, to 2,077.66
In Singapore, the Straits Times Index pointed higher 14.97 points, or 0.5%, to 3,056.91
In Australia, the S&P/ASX 200 dipped six points, or 0.1%, to 5,615.58
