Asian markets were mostly lower, as a triple-whammy of concerns over the upcoming U.S. presidential election, weak Japanese data and lower oil prices weighed on sentiment.
The Nikkei 225 Index faded 21.39 points, or 0.1%, to 17,425.02, as investors awaited announcements from the Bank of Japan, which started a two-day monetary policy meeting on Monday.
But most analysts don't expect any moves from the central bank.
The Hang Seng Index in Hong Kong lost 20.27 points, or 0.1%, to 22,934.54
In currency markets, the yen weakened against the dollar, fetching 104.84 as of late afternoon local time, but still below the key level of 105 seen during Friday's Asian session.
Data released Monday in Japan showed continued weakness. The Ministry of Economy, Trade and Industry reported that September industrial output was flat from the previous month amid sluggish global growth, and September retail sales fell for the seventh straight month, down 1.9% year-on-year.
But there were some bright spots; September auto production increased 1.4% from a year ago, and September housing starts increased 10% on-year, beating expectations.
On the corporate news front, three Japanese shippers announced a joint venture to merge their container shipping operations, sending the stocks in all three gyrating. Shares in Nippon Yusen were up 6.4%, while Kawasaki Kisen Kaisha trimmed its gains to 0.4% Mitsui OSK Lines surged 5.6%.
The global shipping industry has in recent years struggled with sluggish global demand and overcapacity. The three firms said the merger would see annual cost benefits of about 110 billion yen ($1.05 billion)
Australian markets were among the few in the region in positive territory on Monday, boosted by a 0.9% gain in its materials sub-index, and the industrial sub-index, which gained 1.6%
Singapore's DBS Group said it would buy ANZ's retail and wealth operations in Singapore, Hong Kong, China, Taiwan and Indonesia for about $80 million U.S.
ANZ investors appear to have viewed the deal favorably, with the stock up 0.8% at A$27.85 ($21.18 U.S.). But DBS Group share dipped 0.07% to S$14.91 ($10.72 U.S.), likely capped by the Singapore lender reporting a flat net profit and interest income in the third-quarter.
In South Korea, the embattled container shipping company Hanjin Shipping traded up 24.8% on news of Seoul's plan to establish a state-backed ship financing company to support the hard-hit industry.
In other markets
The CSI 300 in Shanghai dropped 3.85 points, or 0.1%, to 3,336.28
In Korea, the Kospi dipped 11.23 points, or 0.6%, to 2,008.19
The Straits Times Index in Singapore slid 2.39 points, or 0.1%, to 2,813.87
In Taiwan, the Taiex Index faltered 16.8 points, or 0.2%, to 9,290.12
In New Zealand, the NZX 50 gained 17.38 points, or 0.3%, to 6,960.68
In Australia, the ASX 200 leaped 33.89 points, or 0.6%, to 5,317.73
