Chinese markets end flat after inflation data disappoint

Asian stocks retreated on Monday as Beijing's latest stimulus fell short of investor expectations and weak inflation data dampened hopes for a significant recovery in the world's second largest economy.

Concerns over U.S. dollar strength and international trade relationships also weighed on regional markets as the Republican Party edged closer to sweeping both chambers of the U.S. Congress.

Donald Trump suggested on Sunday bypassing Senate confirmation of his political appointments through the use of recess appointments.

The dollar hovered near four-month peak versus major peers on expectations of light regulation under Trump and ahead of key U.S. inflation data and speeches by Federal Reserve officials, including Fed Chair Jerome Powell later in the week.

Gold extended declines for a second straight session and oil extended Friday's steep decline due to dollar strength.

China's Shanghai Composite index ended 0.51 percent higher at 3,470.07, reversing an early slide after data showed consumer prices in the country rose at the slowest pace in four months in October and producer price deflation deepened.

Data released by the National Bureau of Statistics on Saturday showed that consumer price inflation softened to 0.3 percent in October from 0.4 percent in September. Moreover, this was the weakest in four months. Meanwhile, core inflation that excludes prices of food and energy rose to 0.2 percent from 0.1 percent in the previous month.

Data showed that producer prices continued to decline in October. Prices were down 2.9 percent annually after falling 2.8 percent in the previous month.

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