TOKYO, Japan: Asian stocks started the week on an uneven note Monday, as investors weighed concerns over China's slowing economy against optimism from Wall Street's latest rally.

Hong Kong's Hang Seng edged up 0.1 percent to 26,421.63, while the Shanghai Composite slipped 0.1 percent to 3,866.37. Analysts said China's August data fell short of expectations, adding to worries that U.S. President Donald Trump's tariffs are undermining supply chains and trade.

"China's economy continued to slide in August, with all key activity readings falling short of market forecasts once more," said Lynn Song of ING Economics. "Given the slowdown of the past few months, we expect that there's a strong case for additional short-term stimulus efforts."

Retail sales rose just 3.4 percent, the weakest pace since last November, and well below July's 5.7 percent and June's 6.8 percent.

"The underlying flow is shifting," said Stephen Innes, managing partner at SPI Asset Management. "For years, Beijing leaned on exports as the carry trade that kept growth rolling even as property cracked. But with Trump's tariffs slicing through supply chains, that leg of the trade is gone."

Elsewhere, Australia's S&P/ASX 200 lost nearly 0.2 percent to 8,851.70, while South Korea's Kospi gained 0.4 percent to 3,408.54. Markets in Japan were closed for a holiday.

On Wall Street, the S&P 500 closed just shy of its record high on Friday, slipping less than 0.1 percent after touching an all-time peak the previous day. The Dow Jones Industrial Average dropped 273 points, or 0.6 percent, to 45,834.22, while the Nasdaq composite rose 0.4 percent to 22,141.10.

Investors are betting that the Federal Reserve will cut interest rates for the first time this year at its policy meeting next week. "That means that, if the interest rate cuts don't happen, the market could drop in disappointment," analysts warned.

In bonds, the yield on the 10-year Treasury climbed to 4.06 percent from 4.01 percent late on September 11, paring back a sharp decline earlier in the week.

Oil prices edged higher. Benchmark U.S. crude rose 37 cents to US$63.06 a barrel, while Brent crude added 36 cents to $67.35.

In currencies, the U.S. dollar inched up to 147.67 Japanese yen from 147.65 yen, while the euro was steady at $1.1732.