Japan’s Nikkei 225 tumbled over 4% Monday, while Australia stocks hit a fresh high ahead of key economic data from China.

Japan saw its retail sales for August climb 2.8% year on year, beating Reuters poll estimates of a 2.3% rise, and up from a revised 2.7% rise in July. The broad-based Topix saw a smaller loss of 3.13%.

The Japanese yen weakened 0.29% against the dollar, trading at 142.63.

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Separately, China will release its official purchasing managers’ index numbers for September, with economists polled by Reuters expecting the manufacturing PMI to come in at 49.5, a softer contraction compared to August’s 49.1.

The Caixin PMI survey, which is a private survey compiled by S&P Global, will also be released Monday.

Australia’s S&P/ASX 200 climbed 0.62%, breaching its all-time high of 8,246.2.

South Korea’s Kospi fell 0.54%, and the small cap Kosdaq slipped 0.49%

Hong Kong’s Hang Seng index futures were at 20,910, lower than the HSI’s last close of 20,632.30.

Overnight in the U.S., the Dow Jones Industrial Average rose to a new high on Friday as traders assessed fresh data that showed to more progress on reining in inflation.

The 30-stock Dow added 0.33%, ending at 42,313.00. The S&P 500 ticked down 0.13%, while the Nasdaq Composite lost 0.39%.

This comes as traders assess encouraging August inflation data, which saw the personal consumption expenditures price index — the Federal Reserve’s favored measure of inflation — increasing 0.1%, matching expectations from economists polled by Dow Jones. 

PCE climbed at an annualized pace of 2.2%, below the 2.3% forecast.

—CNBC’s Brian Evans and Pia Singh contributed to this report.

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