While Japan's market fell, stocks in Hong Kong and mainland China rose on expectations of further measures by the Chinese government to boost the economy after last month's big interest rate cut and multibillion dollar stimulus package.

"These are the appetizers of a full meal," said Winson Fong, managing director at SG Asset Management in Hong Kong, which overseas about $3 billion in equities in Asia, referring to those earlier measures. "It's not the end."

Hong Kong's Hang Seng index was up 297 points, or 2.1 percent, to 14,185.8, continuing its rally from last week, when it rose nearly 10 percent. China's Shanghai Composite index was up 0.4 percent to 1,879.66.

India's benchmark Sensex index also rose, climbing 2.4 percent to 9,305.94, reflecting at least some investor confidence in the wake of the terrorist attacks in Mumbai, where the stock exchange is located, that left at least 174 people dead.

Stocks in Australia, Singapore and South Korea also fell.

Early reports from the U.S. showed modest gains in retail sales on Black Friday — the traditional start of the American holiday shopping season — but business appeared to fall off during the remainder of the weekend, considered one of the most important of the year for U.S. retailers. Also, sales gains seemed to come at the expense of profits as companies slashed prices to lure shoppers.

"We don't know if it's driven by sales or if U.S. consumers are getting their confidence back," said Fong.

Investors around the world are paying close attention to the weekend sales figures for clues on the strength of the American economy, a vital export market.