The Australian share market has given up most of its gains to finish about where it started with concerns over the state of China's economy and its slackening consumer demand.
The benchmark S&P/ASX200 index had been up as much as 0.4 per cent on Monday but finished just 4.1 points higher at 7,199, a gain of 0.06 per cent.
The broader All Ordinaries rose 4.6 points, or 0.06 per cent, to 7,410.2.
The loss of puff coincided with Chinese markets opening lower after weekend economic data showed a faster-than-expected decline in consumer prices last month.
"Deflation is deepening and, while debate rages about why, the trend is undeniable: consumer prices are falling and producer prices have been negative for more than a year," Capital.com market analyst Kyle Rodda said in a note.
"The data simultaneously indicates anaemic demand and the eroding profitability of Chinese companies."
The ASX's mining sector, which depends in large part on exports to China, fell 0.6 per cent, with BHP dropping 0.4 per cent to $47.54.
Fortescue added 0.7 per cent to $25.94, Rio Tinto was flat at $128.90 and South32 dropped 1.3 per cent to $3.09.
Goldminers were generally mostly lower, with Northern Star falling 2.1 per cent and Newmont dropping 1.2 per cent, after a better-than-expected monthly jobs report out of the US late Friday worked against the narrative the Fed would cut interest rates aggressively next year.
Gold prices tumbled just under $US2,000, from $2,030 last week.
Energy was the biggest gainer, climbing 1.2 per cent as Brent crude traded around a one-week high of $US76 a barrel.
Woodside finished up 1.5 per cent to $30.26 and Santos gained 0.6 per cent to $7.29 as markets awaited word on the outcome of their merger talks.
Sigma Healthcare was in a trading halt after the pharmacy supplier announced it would merge with Chemist Warehouse in what amounts to a reverse takeover for the privately held 600-store pharmacy chain.
The merged entity will be a retail giant with an estimated valuation of $8.8 billion, making it a likely candidate for the ASX200 and perhaps even the ASX100.
The Big Four banks were mostly higher, with CBA up 0.5 per cent to $106.94, NAB adding 0.3 per cent to $29.30, ANZ flat at $24.61 and Westpac edging 0.1 per cent higher at $21.94.
Pact Group had soared 22.6 per cent to 84c after Kin Group's wholly-owned subsidiary, Bennamon Industries, increased its bid to 84c for the speciality packaging company.
Smartgroup rose 7.4 per cent to $8.95 after winning a bid to be the exclusive salary packaging and novated leasing provider for the South Australian government's 110,000 employees.
Perenti Global slipped 5.4 per cent to $1.045 despite the drilling services company raising guidance following its acquisition of DDH1 drilling in October for about $400 million in cash and scrip.
Perenti managing director and chief executive Mark Norwell said the teams were integrating seamlessly and there was steady demand for their drilling expertise.
In small caps, InteliCare gained 15.4 per cent to 3c after announcing its proprietary AI smart sensor platform would be deployed in six residential aged care homes under a new agreement.
The Australian dollar was buying 65.56 US cents, from 66.13 US cents at Friday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 4.1 points, or 0.06 per cent, at 7,199.
* The broader All Ordinaries gained 4.6 points, or 0.06 per cent, to 7,410.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.56 US cents, from 66.13 US cents at Friday's ASX close
* 95.44 Japanese yen, from 95.20 Japanese yen
* 60.91 Euro cents, from 61.33 Euro cents
* 52.28 British pence, from 52.54 pence
* 107.29 NZ cents, from 107.29 NZ cents.
The Australian dollar was buying 65.55 US cents, from 66.13 US cents at Friday's ASX close.
