Asian stocks closed mostly lower on Monday as the British pound hit a three-month low on 'hard Brexit' fears and Chinese Premier Li Keqiang said the economy will face greater pressure and difficulties this year amid an increasingly complicated international setting.
U.K. Prime Minister Theresa May is expected to elaborate on the U.K.'s negotiation priorities in a much-anticipated speech on Tuesday, urging her country to "unite to make a success and build a truly global Britain."
Investors also looked forward to U.S. President-elect Donald Trump's inauguration on Friday for any clarity on his economic plans, with the Obama administration urging Trump to "reach out" to the growing faction of House Democrats who have pledged to boycott the ceremony after revelations of Russia's alleged meddling in the 2016 election.
China's Shanghai Composite index dropped 10.07 points or 0.32 percent to 3,102.69, extending losses for the fifth consecutive session on worries about slowing growth, capital outflows and reserve depletion. The benchmark index fell as much as 2.2 percent at one point early in the day.
The Shenzhen Composite index slumped as much as 6.1 percent before paring losses to close 3.62 percent lower at 1,851.41. Hong Kong's Hang Seng index was down 219 points or 0.96 percent at 22,718 in late trade.
Japanese shares hit their lowest level in over two weeks, as the yen remained stronger against rivals on "hard Brexit" fears and official data showed Japan's core machinery orders fell in November at their fastest pace in seven months. Private-sector machinery orders, excluding volatile ones for ships and those from electric power companies, fell a seasonally adjusted 5.1 percent in November from the previous month, reversing a 4.1 percent rise in the previous month.
The Nikkei average fell 192.04 points or 1.0 percent to 19,095.24, its lowest level since December 30, while the broader Topix index closed 0.92 percent lower at 1,530.64. Takata Corp shares slumped 10.6 percent as the airbag maker pleaded guilty to criminal wrongdoing after hiding a fatal defect in its airbag inflators.
Nintendo lost 2.3 percent to extend Friday's losses after unveiling details about the Nintendo Switch. Honda Motor closed marginally lower after saying it plans to sell more than 5 million vehicles worldwide next fiscal year.
Australian shares closed stronger as a rise in commodity prices boosted mining stocks. The benchmark S&P/ASX 200 climbed 27.30 points or 0.48 percent to 5,748.40 while the broader All Ordinaries index closed 26.20 points or 0.45 percent higher at 5,803.
BHP Billiton, Rio Tinto and Fortescue Metals Group rallied 2-3 percent after iron ore futures in China soared 8 percent to a three-year high. Gold miners Evolution, Newcrest, Northern Star and Regis Resources rose about 2 percent each as gold prices edged higher on uncertainty over Trump's economic policies. Duet Group soared 5.4 percent after the energy giant agreed to Hong Kong billionaire Li Ka-shing's A$7.3 billion buyout offer.
South Korea's Kospi average dropped 12.62 points or 0.61 percent to 2,064.17 as investors looked ahead to Trump's inauguration. Market bellwether Samsung Electronics tumbled 2.1 percent after prosecutors accused Samsung chief Jay Y Lee of bribery and sought an arrest warrant.
New Zealand's benchmark S&P/NZX-50 index rose 27.97 points or 0.40 percent to 7,074.94, a three-month high, in quiet trading ahead of the reporting season. A2 Milk rallied 3.6 percent on bargain hunting after recent steep losses while Vital Healthcare, Vector and Kiwi Property Group fell over 1 percent.
India's Sensex was up 0.29 percent at 27,316, erasing early losses. Indonesia's Jakarta Composite index was marginally higher, while benchmark indexes in Malaysia, Singapore and Taiwan were down between 0.5 percent and 0.9 percent.
U.S. stocks closed mostly higher on Friday as major banks posted strong quarterly results and economic data on retail sales, consumer sentiment and producer prices proved a mixed bag.
The S&P 500 rose 0.2 percent and the tech-heavy Nasdaq gained half a percent to reach a fresh record closing high, while the Dow finished marginally lower.
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