Hong Kong's benchmark Hang Seng Index slipped lower Monday, with much of the region following suit, as traders' attention focused on the apparent resolution of the takeover battle for India's wireless operator Hutchison Essar Ltd.
In Tokyo, markets were closed for a national holiday while Hong Kong's Hang Seng Index fell 84.25 points, or 0.4 percent, to close at 20,593.41 points.
China Mobile, the biggest mobile operator by subscribers, fell 1.6 percent to HK$75.20 after HSI Services announced on Friday the addition China Life Insurance and mainland banking giant Industrial & Commercial Bank of China to the blue-chip gauge.
The introduction of the two H-shares means China Mobile's 21.6 percent-weighting in the index will be reduced when the index reshuffle takes effect March 12. H-shares are Hong Kong-listed share issued by a company registered and based in China.
The mobile operator was also hurt by speculation that Vodafone Group will sell its 3.3 percent stake to help fund a US$11.1 billion purchase of a 67 percent stake in an Indian cell phone firm from Hutchison Telecommunications International.
Hutchison Telecoms was suspended from trading pending an announcement about the deal.
Elsewhere:
BANGKOK: Thailand's shares ended higher in thin trade on buying in energy and telecom stocks. The Stock Exchange of Thailand's SET index gained 0.3 percent to close at 697.46 points.
JAKARTA: Indonesian shares rose 0.2 percent to 1,743.03, in moderate volume as investors begin picking up bargain-priced blue-chips, traders said.
KUALA LUMPUR: Malaysian shares fell as investors took profits after a strong run-up in share prices. The Kuala Lumpur Composite Index slid 0.7 percent to 1,231.87 points.
MANILA: Philippine shares declined as investors locked in profits from last week's gains. The Philippine Stock Exchange Index dropped 11.65 points, or 0.4 percent, at 3,234.16.
MUMBAI: Indian shares ended sharply lower, tracking weak U.S. markets, as funds sold shares of Hindalco Industries on concerns of an earnings dip in the near term following its move to buy Canada's Novelis Inc. The Bombay Stock Exchange's 30-stock Sensitive Index, or Sensex, fell 348.20 points, or 2.4 percent, to end at 14,190.70.
SEOUL: South Korean shares fell as investors dumped banking and technology stocks to realize profit from their recent gains. The Korea Composite Stock Price Index, or Kospi, fell 13.39 points, or 0.9 percent, to 1,414.29.
SINGAPORE: Singapore's shares fell, tracking falls in Wall Street and in the region, but traders said the index would likely trend higher this week. The benchmark Straits Times Index dropped 50.43 points, or 1.6 percent, to 3,170.46.
TAIPEI: Taiwanese shares fell as investors cashed out before the weeklong Chinese New Year holiday following overnight U.S. stock losses. The Weighted Price Index of the Taiwan Stock Exchange dropped 83.17 points, or 1.1 percent, at 7,776.36.
WELLINGTON: New Zealand shares slipped in lackluster trade and look set to tread water ahead of Fletcher Building's fiscal first-half result Wednesday, with the result viewed as a barometer for the health of the domestic economy. The benchmark NZX-50 slipped 9.3 points, or 0.2 percent, to 4,179.57.
SYDNEY: Australian shares endeded slightly lower after hitting a record intraday high driven by a surge in BHP Billiton shares. The benchmark S&P/ASX 200 dropped 3.1 points at 5,924.1.
With files from wire services
