Japan Stocks Fall, Australian Shares Rise After China Pledges No 'Hard Landing'

Asian stocks were mixed on Monday morning after China reset its economic growth target. While the target was adjusted from 7 percent previously to a range of 6.5 percent to 7 percent, some investors considered the new figure a pledge the government would do everything to meet.

Japan's Nikkei 225 fell 0.5 percent. South Korea's KOSPI rose 0.3 percent, Singapore's STI 0.2 percent and the ASX 200 in Australia, big supplier of metals to China, gained 0.9 percent.

Chinese Premier Li Keqiang made the announcement on Saturday at the opening of the annual National People's Congress in China. On Sunday, Xu Shaoshi, the chief economic planner, said "China will absolutely not experience a hard landing" even as it implements shutdowns and layoffs in so-called zombie companies.

While it's not clear what the government of the People's Bank of China will do, "this is almost a 'whatever it takes' comment, and shows China will not take its foot off the growth accelerator," said, Evan Lucas, market strategist at IG, CNBC reported.

"Zombie" companies are unprofitable and inefficient but are kept afloat with subsidies and loans, hurting more efficient businesses. The government has supported them to keep economic growth from slowing further. Last year's 6.9 percent expansion was the slowest in a quarter century.