<div style="text-align: justify; "><b style="font-size: 1rem;">Asian stocks were mixed Monday as traders struggled to maintain momentum from last week's rally, though Shanghai advanced as mainland Chinese markets reopened after a week-long Lunar New Year break.</b><br></div><div style="text-align: justify; "><br></div><div style="text-align: justify;">Even a strong performance on Wall Street was not enough to lift sentiment across the region as data showed the Federal Reserve's preferred gauge of inflation rose in December at its slowest pace in more than a year.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The reading saw dealers ramp up bets on the central bank lifting interest rates this week by just 25 basis points, down from the half-point hike last month, which followed four straight 75-point increases.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The European Central Bank and Bank of England are also due to announce decisions this week.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The meetings come as a string of recent data suggests that last year's monetary tightening campaign by policymakers was beginning to kick in as price rises begin to slow from their mutli-decade highs.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">But there remains a lot of trepidation on trading floors that economies could still slip into recession, while a mixed earnings season so far has also caused concern about company profits.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">US Treasury Secretary Janet Yellen said that while she was pleased to see inflation coming down, she remained wary about the economic outlook.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"I'm reasonably satisfied by the data that I've seen so far, but I don't want to minimise the risk of recession" owing to the Fed's rate hikes "slowing down the economy", she told Bloomberg News.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">That worry was offsetting optimism in Asia about a strong recovery in China this year as it emerges from its painful period of zero-Covid.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Signs of strong travel and spending over last week's break added to the upbeat mood, coupled with data showing there was no explosion in Covid cases over that time, suggesting the disease could be under control now.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Shanghai rallied as it resumed trading, while Tokyo, Taipei, Jakarta and Wellington also rose, though Hong Kong, Sydney, Seoul, Singapore and Manila slipped.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Chinese markets are "catching up with the performance of Hong Kong and US markets during the Chinese New Year", said Willer Chen, at Forsyth Barr Asia.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"The market is very excited about the holiday data."</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Oil prices rose on increased demand expectations as China emerges from years of strict Covid controls.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">There was little impact on the commodity market from news of a drone strike on an Iranian defence ministry site.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"While oil prices opened higher on the headlines, the risk to global supply seems relatively limited at present," said SPI Asset Management's Stephen Innes.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"Iran's oil production facilities are located primarily in the southwest of the country and were not targeted in the current strikes.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">"Iran is a marginal global crude exporter, and any significant disruption could be offset by newly-created OPEC spare capacity."</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">He added that traders were keeping an eye on developments as any escalation could see disruptions in the key transit point in the Strait of Hormuz. However, he added that observers saw such an issue as being unlikely for now.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">- Key figures around 0230 GMT -</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Tokyo - Nikkei 225: UP 0.3 percent at 27,473.75 (break)</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Hong Kong - Hang Seng Index: DOWN 0.7 percent at 22,533.08</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Shanghai - Composite: UP 0.6 percent at 3285.65</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Dollar/yen: UP at 130.14 yen from 129.80 yen on Friday</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Euro/dollar: DOWN at $1.0871 from $1.0874</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Pound/dollar: DOWN at $1.2391 from $1.2395</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Euro/pound: UP at 87.75 pence from 87.65 pence</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">West Texas Intermediate: UP 0.2 percent at $79.87 per barrel</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Brent North Sea crude: UP 0.2 percent at $86.60 per barrel</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">New York - Dow: UP 0.1 percent at 33,978.08 (close)</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">London - FTSE 100: FLAT at 7,765.15 (close). AFP</div><div style="text-align: justify;"><br></div><div style="text-align: justify; ">bnbd24/kh</div>