Nikkei 225 index dropped 0.2%, the TOPIX index shed 0.8%, while Straits Times index shed 0.1%

Most Asian stocks kept to a tight range on Monday as a market holiday in China kept trading volumes dull, while Japanese shares pulled back on dismal fourth quarter economic growth data.

South Korean and Taiwanese markets were also closed for the day.

Nikkei 225 index dropped 0.2%, while the TOPIX index shed 0.8% after gross domestic product data showed growth missed expectations by a wide margin in the fourth quarter.

Japanese GDP grew 0.2% year-on-year in Q4, much lower than forecasts of 1.6%. The figure also showed little improvement in growth after a sharp decline in the third quarter.

The weak print was driven chiefly by weak business spending, sluggish export demand, and tepid private consumption. Late-2025 stimulus measures from Tokyo did little to support growth.

Still, broader losses in Japanese shares were curtailed by bets that Prime Minister Sanae Takaichi will ramp up Tokyo’s fiscal stimulus to support economic growth.

Signs of a weakening Japanese economy also diminished the outlook for more interest rate hikes by the Bank of Japan, although Monday’s data showed inflation remained sticky in Q4.

Hang Seng index gained 0.3% in holiday-thinned trade.

Metal miners CMOC Group Ltd and Laopu Gold Co Ltd were among the best performers on the index, adding nearly 6% apiece after the two were added to the Hang Seng index after a recent review.

Battery giant Contemporary Amperex Technology Co Ltd added 2.5% after also being added to the index.

On the other hand, automobile retailer Zhongsheng Group Holdings Ltd dropped 2% after being removed from the index.

Chinese markets will be closed for the whole week for the Lunar New Year, while Hong Kong will be shut from Tuesday to Thursday.

Among other Asian markets, ASX 200 added 0.2%, while Straits Times index shed 0.1% after the country’s key non-oil exports read weaker than expected for January.