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Hong Kong - Asian markets mostly fell on Monday, with Tokyo tumbling almost 3% after data showed Japan's economy had slipped into recession.
Hong Kong was lower and Shanghai higher in afternoon trading on the first day of a landmark link-up between the two exchanges.
A day after G20 leaders pledged to boost the global economy by $2trn in four years, Tokyo authorities said Japan's GDP had contracted for a second straight quarter, fuelling expectations of a snap election and the delay of a planned sales tax rise.
Tokyo stocks - which had surged more than 10% this month - tumbled 2.96% to 16 973.80.
Sydney lost 0.77% to end at 5 412.5 and Seoul was flat, dipping 1.51 points to 1 943.63.
Shanghai closed down 0.19% at 2 474.01 and Hong Kong sank 1.21% to 23 797.08.
Official figures showed the Japanese economy shrank 0.4% quarter-on-quarter - an annualised rate of 1.6% - in July to September, confounding forecasts of 0.5% growth.
READ: Shock Japan recession a blow to global economy
It followed a revised 1.9% contraction in April to June - or 7.3% at an annualised rate.
Two consecutive quarters of contraction is considered a technical recession.
The figure makes it almost inevitable that Prime Minister Shinzo Abe will delay a sales tax rise due next October and call snap elections for next month.
READ: Bank of Japan opts for more monetary easing
The economy expanded in the first three months of the year, but an April 1 increase in sales tax - aimed at repaying a huge national debt - hammered consumer spending and slammed the brakes on a nascent recovery.
Last month the Bank of Japan moved to kickstart growth again by expanding its already vast monetary easing programme - sending the Nikkei stock index surging and yen plunging - but the latest data will lead to speculation of further measures.
Snap elections
The announcement briefly sent the dollar above ¥117 before retreating to ¥115.92, against ¥116.26 in New York on Friday.
The euro fetched $1.2531 and ¥145.27 compared with $1.2523 and ¥145.66.
Shares in Hong Kong reversed initial gains despite the start of the exchange link with Shanghai, which is expected to see billions of dollars in cross-border transactions each day.
READ:Buyers snap up Chinese stock as new link opens
But while Hong Kong investors bought their daily allowance of Shanghai shares before the end of trade, mainlanders used up just a tenth of their quota, suggesting they are holding back.
Jackson Wong, associate director at Simsen International Financial Group, told AFP: "Northbound (trading) is many times higher than southbound. That means Chinese investors are not blindly buying HK stocks. It's not a bad sign."
The two markets have enjoyed strong gains since the launch date was announced and Zhang Gang, senior analyst at Central China Securities, told Dow Jones Newswires: "Now that the stock trading link has materialised, all the expectations have been fulfilled and people need to take a breather.
"But I am still optimistic about the medium-term prospects of the market, especially if China further relaxes its monetary policy to support the slowing economy."
Oil prices were lower. US benchmark West Texas Intermediate for December delivery fell 82 cents to $75.00, while Brent crude for January was down $1.11 to $78.30.
Gold was at $1 186.55 an ounce, compared with $1 152.81 late on Friday.
In other markets:
- Singapore closed down 0.81% to 3 288.67.
Singapore Telecom fell 0.51% to Sg$3.93 while real estate developer Capitaland was down 0.31% to Sg$3.24.
- Jakarta closed 0.09% higher to 5 053.94.
Palm oil producer Astra Agro Lestari rose 1.29% to 23 550 rupiah, while car maker Astra International fell 0.70% to 7 125 rupiah.
- Mumbai advanced 0.47% to end at 28 177.88 points.
State Bank of India gained 5.44% to 2 940.15 rupees, while ICICI Bank lost 1.27% to 1 673.65 rupees.
- Bangkok closed down 0.43% to 1 569.07.
Power giant Electricity Generating gained 2.05% to 174.00 baht, while oil company PTT fell 1.03% to 384.00baht.
- Kuala Lumpur fell 7.31 point to close at 1 806.48.
RHB Capital went down 0.47% to 8.45 ringgit while Maybank lost 0.10% to 9.55. Public Bank gained 0.33% to 18.26 ringgit.
- Taipei fell 1.10% to 8 884.39.
Taiwan Semiconductor Manufacturing slipped 1.48% to Tw$133.0 while Hon Hai Precision Industry was 1.24% lower at Tw$95.6.
- Wellington added 0.11% to 5 490.23.
Meridian Energy was up 1.49% at NZ$1.705, while Spark fell 0.15% to NZ$3.26.
- Manila rose 0.17% to 7 229.72.
Retailer SSI Group was up 4.8% at 8.51 pesos while BDO was gained 0.28% to 106 pesos. Philippine Long Distance Telephone fell 0.13% to 2.992 pesos.
