Asian markets were pressured in Tuesday trade, following declines on Wall Street overnight, as the war of words between North Korea and the U.S. escalated.
The Nikkei 225 index let go of 67.39 points, or 0.3%, to 20,330.19, after the yen strengthened overnight as investors focused on North Korea.
The Hang Seng Index inched up 12.67 points, or 0.1%, to 27,513.01
In Korea, blue-chip tech stocks sold off following Wall Street's lead. Samsung Electronics closed down 3.7% SK Hynix tumbled 4.9% and LG Electronics fell 3%
Australian markets drooped, as a 1.9% gain in the energy sub-index was offset by losses in retailers. The information technology and health care sub-indexes fell by 0.8% each
In corporate news, the sale of Toshiba's memory chip unit to a group led by Bain Capital for $18 billion U.S. had yet to be signed. Toshiba had informed its banks on Monday that Apple, which is part of the consortium, had not agreed with conditions in the sale. Toshiba stock finished the session lower by 0.7%
Apple suppliers in Asia were lower after the tech giant saw its shares drop about 0.9% on Monday. Apple had reportedly informed suppliers to reduce shipments for one of its latest models, the iPhone X.
Taiwan-listed suppliers finished the session lower: Hon Hai Precision Industry closed down 1.4% and Taiwan Semiconductor Manufacturing Company slid 1.4%. Samsung Electronics fell along most other South Korean tech stocks, while Hong Kong's AAC Technologies Holding fell 1.1%.
Geopolitical tensions came to the fore again overnight after North Korea's foreign minister said U.S. President Donald Trump had declared war. Foreign Minister Ri Yong Ho said that meant the North could target and shoot down U.S. bombers in return. The White House responded that the U.S. had not declared war on the hermit state late on Monday.
The ramp up in saber-rattling followed Trump's speech at the United Nations last week, where the president had warned that if forced, the U.S. would have "no choice but to totally destroy North Korea."
The Japanese currency extended overnight gains to trade at 111.59 yen to the dollar after trading at the 112 handle during Asian trade on Monday.
The yen had firmed slightly following the release of the Bank of Japan's July minutes on Tuesday. The minutes indicated policymakers were optimistic about consumer prices, with some stating that a 2 percent inflation target was a global standard
Japanese Prime Minister Shinzo Abe said Monday he would be dissolving the lower house of parliament on Sept. 28 ahead of a snap election expected on Oct. 22
In other markets
The CSI 300 recovered 2.99 points, or 0.1%, to 3,820.78
In Taiwan, the Taiex index dropped 78.87 points, or 0.8%, to 10,257.02
In Korea, the Kospi index docked 6.08 points, or 0.3%, to 2,374.32
In Singapore, the Straits Times Index faded 3.87 points, or 0.1%, to 3,212.04
In New Zealand, the NZX 50 gained 17.42 points, or 0.2%, to 7,887.18
In Australia, the ASX 200 slid 12.75 points, or 0.2%, to 5,670.98
