Asia report: Markets lower as China remains on holiday

In Japan, the Nikkei 225 was down 1.01% at 21,925.10, as the yen weakened 0.53% against the dollar to last trade at JPY 107.15.

Carmakers were mostly lower, with Toyota off 1.19%, although Mitsubishi Motors outperformed the sector to add 0.36% by the end of the day.

That came after the Nikkei reported that Mitsubishi Corporation was looking to up its shareholding in its namesake auto manufacturer to around 20% through a tender offer.

Mitsubishi Corporation - which was yet to make a decision on the matter - finished the session 1.75% lower.

South Korea’s Kospi was down 1.13% at 2,415.12, while the Hang Seng Index in Hong Kong fell 0.78% to 30,873.63, as markets in the special administrative region returned from their extended holiday.

The blue-chip technology plays led the losses in Seoul, with Samsung Electronics off 2.03% and SK Hynix down 1.31%.

Manufacturers were mixed on the Korean peninsula, with Hyundai Steel falling 0.19% while Posco rose 0.28%.

The South Korean trade ministry had announced on Monday that it would not let the prospect of US steel tariffs, said to be under consideration by the Trump administration, slide idly by.

A report from Yonhap suggested Seoul would look into filing a World Trade Organisation complaint if the US imposes the tariffs.

Oil prices fell, with Brent crude last down 0.63% at $65.26 per barrel and West Texas Intermediate losing 0.55% to $62.05.

In Australia, the S&P/ASX 200 slipped just 0.01% to close at 5,940.90, with the hefty financials subindex losing 0.18%, offset by a 1.93% gain in the information technology sector.

Freshly-minted minutes from the Reserve Bank of Australia suggested policymakers in the sunburnt country were positive about global economic growth.

The central bank’s members also commented that wage growth was still yet to pick up in Australia, despite a strong employment market, leading to higher levels of household debt.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 fell 0.2% to close at 8,098.27 amid a busy earnings season, led lower by Heartland Bank, which lost 2.1%.

The rural-focussed bank reported a 7% uptick in first half profits to NZD 31.1m, with its loan book expanding.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.19% at AUD 1.2662 and the Kiwi retreating 0.15% to NZD 1.3586.