Asia report: Markets start week lower after miserable Friday on Wall Street

In Japan, the Nikkei 225 fell 2.55% to 22,682.08, as the yen strengthened 0.31% against the dollar to last trade at JPY 109.83.

Many of the country’s major exporters finished lower, with Canon down 3.26%, Mitsubishi Motors off 0.73% and Toyota down 1.64%.

On the mainland, the Shanghai Composite was ahead 0.73% at 3,487.38, and the smaller, technology-heavy Shenzhen Composite lost 0.84%.

Fresh data released during the session showed that China’s services sector was expanding at its quickest pace in more than five years.

The Caixin/Markit services purchasing managers index rose to 54.7 in January from 53.9 in December - the highest reading since mid-2012.

South Korea’s Kospi lost 1.33% to 2,491.75, while the Hang Seng Index in Hong Kong was down 1.09% at 32,245.22.

Oil prices were lower, with Brent crude last down 1.3% at $67.70 per barrel, and West Texas Intermediate off 0.96% to $64.83.

In Australia, the S&P/ASX 200 slid 1.6% to 6,026.20, with the hefty financials subindex falling 1.29%, while energy slipped 2.56% and materials was 2.18% lower.

Of the major banks in the region, Australia and New Zealand Banking Group was down 1.27%, Commonwealth Bank fell 1.23%, National Australia Bank was 1.25% lower and Westpac Banking Corporation was off 1.23%.

The major miners were also mostly lower, with BHP down 2.14% in Sydney, Fortescue Metals ending the day flat and Rio Tinto off 2.24%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 2.1% to settle at 8,241.83, led lower by outdoor equipment and clothing retailer Kathmandu, which was off 3.8%.

The down under dollars were mixed, with the Kiwi last 0.03% weaker against the greenback at NZD 1.3701, while the Aussie strengthened 0.12% to AUD 1.2604.