Asian shares mostly lower, China gains on GDP rebound

Shares fell Monday across most of Asia following a retreat on Wall Street, but benchmarks in Hong Kong and Shanghai rose after data showed the Chinese economy grew a solid 2.3% in 2020.

The stronger than expected performance for the world's second-largest economy helped counter growing wariness among investors over deepening economic devastation from the pandemic.

Stocks seem to have run out of steam since the S&P 500 set a record high a week ago amid optimism that COVID-19 vaccines and more stimulus from Washington will bring an economic recovery.

China was the first country to suffer outbreaks of the new coronavirus and the first major economy to begin recovering as meanwhile the U.S., Europe and Japan are struggling with outbreaks.

The Hang Seng in Hong Kong gained 0.2% to 28,635.16 while the Shanghai Composite index climbed 0.3% to 3,576.22. Australia's S&P/ASX 200 declined 0.8% to 6,665.00. Shares also fell in Southeast Asia and Taiwan.

But gloom prevailed in other major regional markets. Tokyo's Nikkei 225 dropped 0.8% to 28.293.51 and the Kospi in South Korea lost 0.7% to 3,063.96.

China's National Statistical Bureau said growth in the three months ending in December rose to 6.5% over a year earlier, up from the previous quarter’s 4.9%, official data showed Monday. The economy contracted at a 6.8% pace in the first quarter of 2020 as the country fought the pandemic with shutdowns and other restrictions.

Some measures showed a slowing of activity in December, but “The big picture is still that activity remains strong, which is helping to support the labor market," Stephen Innes of Axi said in a commentary.

On Friday, the S&P 500 fell 0.7% to 3,768.25, with stocks of companies that most need a healthier economy taking some of the sharpest losses....