Eyes are also on a key meeting of China's top leadership in Beijing, with hopes for measures to boost the world's number two economy, which grew less than expected in the second quarter.

Stocks mixed, dollar rises as traders weigh Trump shooting, illustration photo/ Source: freepik.com

Investors struggled to extend the rally enjoyed on Wall Street last week, where all three main indexes ended on a positive note despite a forecast-topping read on US wholesale prices.

The figures were not enough to overshadow Thursday's news that the consumer price index had slowed more than expected in June, which ramped up bets on a Federal Reserve interest rate cut in September.

That came after central bank chief Jerome Powell told lawmakers that inflation did not need to come in at decision-makers' two percent target for them to begin lowering borrowing costs.

However, investors are keeping a close eye on developments in the United States after Trump was wounded Saturday at a rally ahead of the Republican convention this week.

While the odds of him beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.

Observers said a Trump victory could see lower corporate taxes -- a boost for companies' bottom lines -- but also an increase in tensions with China with fresh tariffs possible.

Still, Katrina Ell at Moody's Analytics said: "The assassination attempt might lead to a temporary boost in the polls for Trump, but a lot can change before November.

"Financial markets are expected to soon refocus on the Federal Reserve and the growing likelihood of a rate cut in September."

The dollar rose Monday, having softened last week owing to the prospect of lower rates, while equity markets were mixed.

Hong Kong, Taipei, Wellington, Bangkok and Jakarta dropped, while Shanghai, Seoul, Mumbai, Sydney, Singapore and Manila rose.

London opened lower Monday, while Paris and Frankfurt also retreated.

Official data showed the Chinese economy expanded just 4.7 percent in the second quarter, well below the 5.1 percent forecast in a survey by Bloomberg and short of the government's five percent goal.

Separately, retail sales slowed sharply in June as the country's army of consumers remain cautious.

The readings highlight the tough work leaders face as they grapple with a real estate debt crisis, weakening consumption, an ageing population and trade tensions with Western rivals.

President Xi Jinping and other top leaders are gathered in Beijing to hammer out plans to kickstart growth, though analysts warned there was unlikely to be any major announcement for the short term.

The "data releases showed that the road to five percent growth remains difficult, and more fiscal and monetary policy support will be needed in the second half of the year if this year's key growth target is to be achieved", said Lynn Song at ING.

- Key figures around 0710 GMT -

Hong Kong - Hang Seng Index: DOWN 1.6 percent at 18,007.30

Shanghai - Composite: UP 0.1 percent at 2,974.01 (close)

London - FTSE 100: DOWN 0.7 percent at 8,193.15

Tokyo - Nikkei 225: Closed for a holiday

Dollar/yen: UP at 158.12 yen from 157.88 yen on Friday

Euro/dollar: DOWN at $1.0889 from $1.0906

Pound/dollar: DOWN at $1.2969 from $1.2989

Euro/pound: DOWN at 83.96 pence from 83.97 pence

West Texas Intermediate: DOWN 0.1 percent at $82.15 per barrel

Brent North Sea Crude: DOWN 0.2 percent at $84.90 per barrel

New York - Dow: UP 0.6 percent at 40,000.90 (close)