Asia Pacific stocks finished the first trading day of the quarter on a weaker note as markets reversed gains seen earlier in the day. Markets also digested new tariffs on U.S. goods announced by China on Monday after Beijing floated the proposal last month.
The Nikkei 225 Index docked 65.72 points, or 0.3%, to 21,388.58
Elsewhere, South Korea's Kospi index slipped, as declines in the country's largest shipmakers weighed on the broader index, as did index heavyweight Samsung Electronics' 1.4% slide.
Despite the overall move lower, gains were seen among so-called THAAD-related stocks, which tend to be sensitive to China-South Korea ties. Shares of Lotte Shopping, Amorepacific and Korean Air Line rose 6.6%, 5.1% and 1.6%, respectively. THAAD-related stocks — named after the anti-missile system — include a range of retail, airline and hospitality stocks.
On the economic front, Japan's tankan survey showed large manufacturers were less confident in the three months ending March amid a firmer yen. Big companies, however, also indicated they intended to increase capital spending by 2.3% in the new financial year, topping the 0.6% projected.
Elsewhere, the Caixin/Markit Purchasing Managers' Index, which focuses on small and mid-size manufacturing, came in at 51.0 for March, missing the 51.7 forecast in an economist poll.
In corporate news, Toshiba said in a Friday statement that the planned sale of its memory chip unit would likely be completed in April. It added that the company still intended to close the deal "as soon as possible." The agreement had been previously slated to be completed by Mar. 31. Toshiba stock closed down 1%
Meanwhile, shares of Japan Display fell 6.2%. The decline came after the screen maker announced plans to raise funds, which media reports said would total $518 million U.S.
ICICI Bank was down 6.4% late Monday, amid news of a police probe involving the spouse of CEO Chanda Kochhar. ICICI last week said that there had been "malicious and unfounded rumours" about the bank, but that its credit approval processes were "robust."
Against the yen, the U.S. dollar fetched 106.32, little changed for the Asian trading day.
Markets in Hong Kong, New Zealand and Australia were shuttered for Easter Monday
CHINA
The CSI 300 fell 11.58 points, or 0.3%, to 3,886.92, after China on Friday unveiled its pilot plan to spur high-tech companies listed abroad to also issue depositary receipts on the mainland.
An ongoing trade spat between the U.S. and China continued to develop, with China announcing early on Monday that it was implementing tariffs on 128 types of U.S. imports starting Monday.
That matched the list of products proposed by Beijing in March and comes as a direct response to U.S. President Donald Trump signing off on tariffs on imported steel and aluminum last month. China said in March that those goods had an import value of $3 billion in 2017.
Data released on Saturday showed that manufacturing activity in China expanded more than expected in March.The official Purchasing Managers' Index rose to 51.5 last month, above the 50.5 estimated in a Reuters survey. That also topped the 50.3 figure seen in February.
In other markets
In Taiwan, the Taiex dropped 31.22 points, or 0.3%, to 10,888.27
In Korea, the Kospi slid 1.69 points, or 0.1%, to 2,444.16
In Singapore, the Straits Times Index nicked up 2.79 points, or 0.1%, to 3,430.76
