Most of the Asian markets fell Monday as investors continued to have worries that the global economy is weakening and the growth is losing its momentum following the weak GDP data from Japan.
The Chinese Shanghai Composite fell 1.51 percent or 32.74 points to 2136.08. Hong Kong's Hang Seng was down 0.35 percent or 70.63 points to 20065.49. Among major losers were Sands China Ltd (1.22 percent) and Hang Seng Bank Ltd (1.79 percent).
Japan's Nikkei Stock Average was marginally down 0.07 percent or 6.29 points to 8885.15. Among major losers were Sharp Corp (3.83 percent), Trend Micro Corp (3.73 percent) and Mitsui OSK Lines Ltd (2.60 percent).
India's BSE Sensex was down 0.16 percent or 28.1 points to 17529.64. Major gainers were United Breweries Ltd (2.41 percent), Maruti Suzuki India (1.59 percent) and Suzlon Energy Ltd (0.87 percent).
South Korea's KOSPI Composite Index dropped 0.72 percent or 13.96 points to 1932.44. Shares of Samsung Electronics Co Ltd fell 1.56 percent and those of Hyundai Motor Co advanced 0.20 percent.
Market confidence turned negative as Japan's gross domestic product growth slowed down in the second quarter, reviving worries among investors. Japan's economy grew at 0.3 percent in April-June down from 1.2 percent in the first three months of the year due to a soft global demand and weak consumer spending, show the official data released Monday.
The continuing debt crisis in Europe and the tentative U.S. recovery have hurt the demand for exports. The eco-car subsidy helped drive consumer spending and public investment increased as earthquake-related reconstruction work got underway. The dependence on government support is worrying as a rise in tensions in the euro zone has hurt consumer and business confidence and is likely to weigh on the private sector spending as the government support weakens.
The strengthening of the yen, especially due to global factors, is also worrying the Japanese economy. A weaker yen would help the Japanese exporters. But the Japanese government is finding it difficult to deliver a weaker yen since the investors are seeking to escape the euro zone crisis.