Indexes in Asia closed mixed after cautious trade on Tuesday after stocks stumbled and investors turned to safe haven assets on the back of North Korea's recent nuclear test.
In Japan, the Nikkei 225 index lost 122.44 points, or 0.6%, to 19,385.81,
The Hang Seng Index poked ahead 1.09 points to 27,741.35
In individual stocks, Japanese automakers were mixed despite posting solid August sales figures in China. Toyota sales in the country rose 13.2% in August compared to a year ago, according to Nikkei Asian Review. Honda sales picked up 20.6% while Mazda sales climbed 8.4%, Nikkei said. In reaction, Toyota shares closed up 0.8% Honda edged up 0.2% and Mazda fell nearly 1% by the end of the session.
Meanwhile, South Korean retail names closed mostly lower. Shares of Lotte Shopping and Lotte Himart were down 1.2% and 4.5%, respectively. The moves came following news that Lotte Duty Free was weighing a decision to withdraw from Incheon International Airport in South Korea. South Korean retailers have had a difficult year owing in part to China's opposition to the deployment of an anti-missile system in South Korea.
Tensions on the Korean Peninsula remained in focus after South Korean media reported on Tuesday that North Korea was transporting what could be an intercontinental ballistic missile (ICBM).
The U.S. on Monday called for the "strongest possible" sanctions to be imposed on North Korea a day after the North said it had tested a hydrogen bomb. President Donald Trump also spoke to South Korean President Moon Jae-in on the phone, during which he gave "conceptual approval" for South Korea to purchase billions of dollars in weapons from the U.S.
Meanwhile, South Korea would proceed with the rolling out an anti-missile system that had drawn China's ire
Meanwhile, the yen — often regarded as a safe haven currency — firmed during the session, trading at 109.28 yen to the U.S. dollar compared to Monday's close of 109.70 yen.
The Korean won clawed back some losses to trade at 1,129.46 won to the dollar after going as low as 1,132.61 won to the dollar overnight.
The won had traded around the 1,120 handle at the end of last week.
Australian markets squeezed ahead, with falls in the utilities sub-index offset by gains in gold stocks.
In economic news, the Reserve Bank of Australia left the cash rate unchanged at 1.5% on Tuesday, as was widely expected.
The Australian dollar edged up to trade at $0.7972 late in the trading day, retracing losses made after the RBA's announcement.
CHINA
Positive economic data out of China failed to significantly lift sentiment in the region, although Chinese markets mostly traded higher.
The CSI 300 gained 11.43 points, or 0.3%, to 3,857.05
China's Caixin/Markit August services purchasing managers' index (PMI) on Tuesday showed an increase to 52.7 from 51.5 in the previous month. The August reading also showed the services sector in the country grew the fastest in three months. The official services reading came in at 53.4 in August — its lowest level since May 2016 — compared to the 54.5 seen in July.
Both Caixin and official manufacturing PMI for August released last week beat expectations, reflecting resilience in China's manufacturing sector despite concerns of an economic slowdown.
Still, optimism over China's economic outlook gave copper prices a boost on Tuesday, Reuters reported. Copper prices rose to a new three-year high after climbing as high as $6,946.50 U.S. a tonne earlier in the session.
In other markets
In Taiwan, the Taiex index gained 47.97 points, or 0.5%, to 10,617.84
In Korea, the Kospi index fell 3.03 points, or 0.1%, to 2,326.62
In Singapore, the Straits Times Index picked up 20.29 points, or 0.6%, to 3,251.26
In New Zealand, the NZX 50 dropped 30.82 points, or 0.4%, to 7,777.40
In Australia, the ASX 200 grew 4.23 points, or 0.1%, to 5,706.23
