Asian shares are mostly higher as investors keep an eye on China-U.S. trade talks that might help stave off a recession.

China's consumer price index (CPI), a main gauge of inflation, edged down in May, but core CPI growth expanded year-on-year, indicating positive price dynamics, official data showed on Monday.

Inflation in the U.S. has been surprisingly tame despite the ongoing trade wars, but economists widely expect some increase. Just how much - and for how long - well, there's far less agreement about that.

China's producer deflation deepened to its worst level in almost two years in May while consumer prices extended declines, as the economy grappled with trade tensions and a prolonged housing downturn.

Chinas deflationary pressures intensified in May, with both producer and consumer prices falling further as the country struggles with sluggish demand, ongoing trade tensions, and a weakening property market.

The United States is looking to restore the flow of “crucial” rare earth minerals, which were restricted after China’s retaliatory efforts in early April.