China's economic growth slowed to a three-year low in the fourth quarter as domestic demand softened, and while the full-year pace hit Beijing's target, trade tensions and structural imbalances pose significant risks to the outlook.

Weakening demand and policy-driven shifts are forcing Chinese auto manufacturers to rethink growth and profitability assumptions, according to Morgan Stanley.

Most Asian stocks fell on Monday after U.S. President Donald Trump revived global fears of trade tariffs by imposing duties on several major European nations over Greenland. 

Global markets are facing volatility after President Donald Trump vowed to slap tariffs on eight European nations until the U.S. is allowed to buy Greenland, injecting fresh trade uncertainty as stocks slid and the dollar broadly weakened.

U.S. factory production unexpectedly increased in December amid a surge in primary metals output that offset a decline at motor vehicle assembly plants, but activity contracted in the fourth quarter against the backdrop of challenges from import tariffs.