Asia stocks largely slip as investors look ahead to China's first-quarter GDP

SINGAPORE — Shares in Asia largely slipped in Monday morning trade as investors await Chinese economic data, including the economic powerhouse's first-quarter gross domestic product figures.

In Japan, the Nikkei 225 fell 1.77% in morning trade as shares of Fast Retailing and SoftBank Group declined more than 1% each. The Topix index shed 1.64%.

Mainland Chinese stocks were also lower, with the Shanghai composite down about 1% and the Shenzhen component shed 1.484%.

A slew of Chinese economic data, including the country's first-quarter GDP and industrial production figures for March, is set to be released at 10:00 a.m. HK/SIN.

The data comes as mainland China has for weeks been battling its worst Covid wave in two years. In particular, the major city of Shanghai has been among the areas most affected.

South Korea's Kospi outperformed the broader region as it climbed 0.15%. MSCI's broadest index of Asia-Pacific shares outside Japan traded 0.33% lower.

Asia markets may "tread carefully to start the week" as investors digest the People's Bank of China's recent reserve requirement ratio cut, analysts at Singapore's OCBC Treasury Research wrote in a Monday note. The RRR is the amount of funds banks need to hold in reserve.

"This is the smallest cut since China unveiled the reform on reserve requirement ratio in 1998," the analysts said.

On Friday, the Chinese central bank also unexpectedly held steady on a key interest rate, despite anticipation for more stimulus.

Markets in Australia and Hong Kong are closed on Monday for a holiday.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 100.541 — continuing to hold above the 100.4 level after a recent bounce from below 100.

The Japanese yen traded at 126.42 per dollar after weakening last week from below 125 against the greenback. The Australian dollar was at $0.7385, lower as compared with levels above $0.747 seen last week.

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures 0.96% higher at $112.77 per barrel. U.S. crude futures climbed 0.92% to $107.93 per barrel.