Asian markets were mostly lower on Tuesday, as investors tread cautiously ahead of the U.S. Federal Reserve chair's two-day congressional testimony starting Tuesday for her comments on banking regulations and potential hints of the Fed's rate hike trajectory.
The Nikkei 225 Index dropped 220.17 points, or 1.1%, after two straight sessions of solid gains, to 19,238.98
The Hang Seng Index in Hong Kong let go of 7.97 points to 23,703.01
At Janet Yellen semi-annual testimony to Washington's lawmakers, she is expected to face a barrage of questions on what role she believes the Fed will play as banks face a very different post-financial crisis world under the Trump administration, as the new U.S. president, Donald Trump, pushes for financial deregulation.
Japanese Finance Minister Tao Aso said that it may take some time for both Tokyo and Washington to set up a framework for bilateral economic dialogue.
Toshiba shares fell 8%, after the company said it can't say when the October to December quarter earnings report will be released.
The Nikkei business daily had also reported that the Japanese conglomerate may not be able to continue as a going concern, following massive nuclear-related losses.
Australian markets dropped a few points, as a National Australia Bank's January survey showed its index of business conditions were at nine-year high, as firms reported a pick up in sales and steadier profits.
Major Australian miners were mixed, with Rio Tinto up 0.3%, Fortescue Metals flat, while BHP Billiton fell 0.9%
Against the U.S. dollar, the yen slipped to 113.42 late in the afternoon, local time, weaker than last week's low around 111. The Australian dollar was steady at $0.7677 U.S.
Copper prices hit its highest levels since May 2015 overnight on limited supply after strikes at BHP Billiton's Escondida and Freeport McMoran's Indonesian Grasberg mine
Korean markets skidded slightly, as the political scandal, involving the impeached President Park Geun-hye dragged on.
Samsung heir Jay Y. Lee emerged from the South Korean special prosecutor office early Tuesday morning, after being questioned nearly the whole of Monday for his alleged role in a corruption scandal.
In corporate news, China's state-owned Sinochem is in early talks with Noble Group to buy an equity stake in the troubled Singapore commodities trader, Reuters reported late on Monday. Shares of Noble Group soared 9.1% on Tuesday.
Oversea-Chinese Banking Corp., Singapore's second largest listed bank, said net interest income fell 7% in the fourth quarter of 2016 to S$1.25 billion with net allowances for loans and other assets of S$305 million, a jump of 57% above S$193 million in the same quarter a year earlier.
CHINA
In Shanghai, the CSI 300 eased 0.47 points to 3,435.80, after data showed that China's consumer prices rose 2.5% in January on-year, its highest since May 2014. China's producer price index also grew at 6.9%, the quickest pace since August 2011.
In other markets
In Taiwan, the Taiex Index gained 8.46 points, or 0.1%, to 9,718.78
In Korea, the Kospi index retreated 4.08 points, or 0.2%, to 2,074.57
In Singapore, the Straits Times Index slid 39.16 points, or 1.3%, to 3,072.47
In New Zealand, the NZX 50 added 15.39 points, or 0.2%, to 7,150.89
In Australia, the S&P/ASX 200 lost 5.45 points, or 0.1%, to 5,755.24
