Most Asian stocks fell on Monday as a U.S. rating downgrade and mixed economic prints from China kept investors on edge over slowing growth in the world’s largest economies.

Regional markets fell tracking steep losses in U.S. stock index futures, with S&P 500 Futures falling 0.8% in Asian trade. This came after Moody’s downgraded the U.S.’ Aaa investment grade rating over the weekend, citing concerns over stretched government debt and a lack of clear measures to address the issue.

The downgrade weighed on sentiment, which was already cooling as a stock rally sparked by a deescalation in the U.S.-China tariff exchange petered out towards the end of last week. 

Focus was now on more economic signals due in the coming days, including a Reserve Bank of Australia meeting, Japanese consumer inflation data, and a host of U.S. Federal Reserve speakers. 

Chinese stocks trim losses, but econ. data mixed for April 

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes lost about 0.4% and 0.1%, respectively, while Hong Kong’s Hang Seng index fell 0.6%. 

All three indexes trimmed some of their intraday losses after data showed China’s industrial production grew more than expected in April, despite headwinds from steep U.S. trade tariffs. 

But other economic indicators still showed cracks in Asia’s biggest economy. Retail sales grew less than expected, pointed to sustained weakness in consumer spending, while fixed asset investment- a gauge of business spending- also missed growth expectations. 

Monday’s data highlighted sustained difficulty for the Chinese economy, as Beijing struggles to shore up growth and consumer spending. While the U.S. and China did agree to slash their trade tariffs against each other last week, their tariffs against each other still remained relatively high. 

Asia stocks drift lower, RBA rate cut in focus 

Broader Asian markets largely retreated on Monday, as sentiment was quashed by weak signals from the world’s biggest economies.

Australia’s ASX 200 was flat, with local investors awaiting the conclusion of a RBA meeting on Tuesday.

The RBA is widely expected to cut interest rates by 25 basis points, amid continued signs of cooling inflation in the country.

But analysts expect the RBA to sound hawkish on future rate cuts, given that the central bank is still grappling with a host of uncertainties- over Australia and the global economy. 

Japan’s Nikkei 225 and TOPIX indexes fell 0.3% and 0.1%, respectively, mildly extending losses after a dismal gross domestic product print on Friday. 

Japanese consumer inflation data for April is due later this week, and is widely expected to factor into the Bank of Japan’s plans for future interest rate hikes. 

South Korea’s KOSPI fell 0.7%, while Singapore’s Straits Times index shed 0.3%.

Gift Nifty 50 Futures futures for India’s Nifty 50 index fell 0.3%, pointing to a weak open for the index after it clocked stellar gains last week.