Asian stocks traded in narrow ranges Monday with muted volumes due to China's holiday. Japan's shares retreated after Q4 GDP data showed growth of just 0.2%, missing forecasts of 1.6% by a wide margin. Regional markets followed a weak lead from Wall Street, where muted consumer inflation readings left interest rate uncertainty unresolved.

Japan's economic weakness stemmed from declining business spending, sluggish export demand, and tepid private consumption. Despite the weak data, losses in Japanese shares were limited by expectations that Prime Minister Sanae Takaichi will increase fiscal stimulus. Meanwhile, Hong Kong's index added 0.3% with miners Laopu Gold and CMOC Group rising about 6% after their addition to the Hang Seng index.

Chinese markets remain closed for the Lunar New Week, while Hong Kong will be closed Tuesday through Thursday. Australia's market rose 0.2%, Singapore's fell 0.1% after weaker-than-expected January data, and Indian futures dropped 0.4% amid concerns about AI-related disruptions in the software sector. Tech losses pushed the Nifty 1.3% lower on Friday.