Most Asian markets ended lower Monday, with Japanese exporters such as Sony hurt by concerns over the U.S. economy and the yen's recent strength.
But Chinese stocks in Shanghai jumped sharply after data showed the country's manufacturing activity accelerated at the fastest pace in 18 months, helping narrow losses in Hong Kong.
In Tokyo, the Nikkei 225 tumbled 231.79 points, or 2.3%, to 9,802.95.
In Hong Kong, the Hang Seng Index skidded 132.68 points, or 0.6%, to 21,620.19.
Increased risk aversion weighed on shares in Tokyo, with exporters bearing the brunt of the selling after a surge in the yen in early trade. Toshiba and Toyota Motor gave up 2.5% each.
Sony tumbled 5.8%, despite Friday announcing an improved earnings outlook for this fiscal year.
Bucking the general trend, Japan's consumer lenders gained on a Nikkei report over the weekend that the government will consider reversing the tightening of regulations on money lenders, to help self-employed workers facing difficult fundraising conditions. Aiful soared 17.3%, while Takefuji surged 23.1%.
The fall in Sydney was broad-based, with BHP Billiton shrinking 2%, Macquarie Group falling 4.9% and Sigma Pharmaceuticals shedding 1.6%.
Australia's largest department store chain Myer Holdings' closely-watched debut saw its shares opening at 3.88 Australian dollars, a discount to their offer price of A$4.10. The shares ended at A$3.75.
CHINA
Chinese stocks retraced early losses after initially falling in a knee-jerk reaction to regional market declines. Shares may have gotten an extra fillip from HSBC China PMI for October climbing to an 18-month high of 55.4 from September's 55.0, marking the seventh-straight month the figure has remained above 50.0, which indicates the manufacturing sector is expanding.
The Shanghai’s 300 Composite Index climbed 112.43 points, or 3.4%, to 3,392.80.
Leading gains in Shanghai, shares of Ping An Insurance climbed 6.7%, Poly Real Estate Group advanced 3.8%, while SAIC Motor jumped 6.3%.
The performance helped some China-related stocks rebound or pare losses in Hong Kong, with Ping An rising 0.3% and Industrial & Commercial Bank of China gaining 0.2%. But property and resource stocks were mostly lower, with Sino Land sliding 2.4% and Sun Hung Kai Properties dropping 1.6%, while Cnooc shed 1.2%.
Elsewhere:
Taiwan’s Taiex Index fell back 4.90 points, to 7,335.18
Singapore’s Straits Times Index was down 5.70 points, or 0.2%, to 2,645.43
Korea’s Kospi Index retreated 21.60 points, to 1.4%, to 1,559.09
New Zealand’s NZX Index finished 31.88 points, or 1%, in the red to 3,183.74
Australia’s S&P/ASX 200 lost 102.80 points, or 2.2%, to 4,540.40
