Asian shares were mixed on Monday as investors digested the latest move by China to curb a flood of money in the world's second-largest economy following a lending spree.

China's central bank on Friday raised the amount of money banks must keep on reserve for the seventh time in a year. It ordered state-owned banks to set aside an additional 0.5 percent of deposits as reserves, effective Jan. 20.

The central bank occasionally uses increases in bank reserves to help reduce the amount of cash circulating in the economy.

The frenzy of lending over the past two years has helped China rebound quickly from the global crisis. But, combined with bad weather and rising global commodity prices, it has complicated efforts to cool inflation.

The Shanghai Composite index fell 0.6 percent to 2,775.60, and Australia's S&P/ASX 200 lost 0.4 percent to 4,781.80. Benchmarks in Taiwan, New Zealand and Singapore also retreated.

Meanwhile, Japan's Nikkei 225 stock average rose 0.5 percent to 10,550.06 as banks benefited from a strong showing by U.S. financials before the weekend.

The optimism was triggered by JPMorgan Chase & Co., which reported that its income soared 47 percent in the fourth quarter. The bank set aside less money to cover bad loans and said it expected to get permission from the Federal Reserve to raise its dividend.

The Dow Jones industrial average gained 55.48 points, or 0.5 percent, to 11,787.38.

The broader Standard & Poor's 500 index rose 9.48, or 0.7 percent, to 1,293.24. The Nasdaq rose 20.01, or 0.7 percent, to 2,755.30.

U.S. financial markets will be closed Monday to observe the Martin Luther King Jr. Day holiday.

In currencies, the dollar rose to 82.90 yen from 82.80 yen late Friday. The euro stood at $1.3344 from $1.3385.