Most Asian markets followed global markets lower on Tuesday as the eurozone debt crisis took center stage and lawmakers in Washington remained deadlocked on an agreement to avoid a US default.
Tokyo closed 0.85 percent, or 84.75 points, lower at 9,889.72 while Hong Kong's Hang Seng Index closed 97.65 points up at 21,902.40.
Japanese exporters declined, hurt by a stronger yen. Sony Corp. was down 2.5% while camera maker Canon ended 2.8% lower.
Nintendo fell 3.7% after a broker downgrade.
Financials were big losers with Mitsubishi UJF Financial declining 2.5% and Mizuho erasing 2.3%. Nomura fell 2.6% while Sumitomo Mitsui retreated 1.3%.
Kansai Electric fell 3.3% after technical glitches affected the functioning of one of its nuclear reactors. Other utilities also ended lower.
ELSEWHERE:
Singapore closed up 0.56 percent, or 17.17 points, at 3,096.12.
Taipei ended 0.16 percent, or 14.00 points, lower at 8,524.57.
Manila rose 0.22 percent, or 9.64 points, to 4,485.65.
Wellington closed 0.18 percent, or 6.14 points, higher at 3,392.02.
Kuala Lumpur fell 0.44 percent, or 6.94 points, to 1,555.64.
Jakarta fell 0.24 percent, or 9.55 points, to 4,023.42.
Bangkok rose 1.18 percent, or 12.83 points, to 1,096.77.
Mumbai rose 0.79 percent, or 146.83 points, to 18,653.87.
Seoul ended flat, edging down 0.27 points to 2,130.21.
Sydney was flat, losing 3.9 points to 4,468.1.