Stocks in Asia mostly slid into trading on Monday afternoon, as US-China talks resumed in Beijing later this week amid low expectations of a major breakthrough.
In mainland China, Shanghai Composite threw earlier gains to slide 0.14% by afternoon, while the Shenzhen Component and Shenzhen Composite were just below the flat line.
Hong Kong's Hang Seng index fell by 1.20%, as tensions remain high in the city after another clash between protesters and police over the weekend. AIA's life insurance company AIA fell 2.02%.
"Hong Kong, I think, in a business sense, suffers from these kinds of situations," Richard Harris, CEO of Port Shelter Investment Management, told CNBC's "Squawk Box" on Monday.
"It will probably help Singapore, and it will probably help banks, especially because it is so easy to move money, cash, from one jurisdiction to another," Harris said.
Nikkei 225 in Japan fell 0.3% in afternoon trading, as index heavyweight and robot manufacturer Fanuc's shares fell 1
Shares in the Softbank Group conglomerate jumped more than 2.5% after the company's founder and CEO Masayoshi Son told Nikkei in an interview that he expects initial public offering of portfolio companies in his Vision Fund "almost every month" around next year.
Over in South Korea, Kospi fell by 1.49% as shares in chipmaker SK Hynix fell 2.26%.
Australia's S & P / ASX 200, on the other hand, rose 0.49% at most
Overall, the MSCI Asia ex-Japan index was 0.47% lower.
Meanwhile, Singapore's DBS Group on Monday, ahead of the open market, posted a 17% increase in second quarter earnings, coming in at $ 1.6 billion ($ 1.2 billion) versus $ 1.37 billion this year before, hit the projections. The stock throws past gains to fall 0.56% in the afternoon.
U.S.-China trade talks are also set to resume this week, with a Washington trade delegation scheduled to fly to China on Monday for talks with Beijing officials. However, expectations of a major breakthrough are low, while National Economic Council Director Larry Kudlow told CNBC last Friday that he "would not expect any big deal."
Last Friday, strong revenues and better-than-expected GDP data pushed the S&P 500 and Nasdaq Composite to record highs. The S&P 500 gained 0.7% to close at 3,025.86, while the Nasdaq Composite rose 1.1% to end its trading day at 830.21. The Dow Jones Industrial Average also closed 51.47 points higher at 27,192.45.
More than 40% of S&P 500 companies reported quarterly earnings for the second quarter. Of these companies, 76.4% had a stronger result than expected, according to FactSet. The US economy also expanded more than expected in the second quarter, growing 2.1% compared to expectations of a 1.8% increase of economists surveyed in CNBC / Moody's Analytics Rapid Update.
Meanwhile, the Chinese industrial surplus fell in June, according to the country's National Bureau of Statistics on Saturday. Industrial profit fell 3.1% in June from a year earlier, following a 1.1% gain in May.
Tapsen Strickland, an economist at the National Australia Bank, wrote in a morning note: "The decline in profits is consistent with the soft producer prices seen earlier this month and also suggests that margins are being affected by the US-China trade war. 19659002] The US dollar index, which tracks the greenback against a basket of its peers, stood at 97,987 after rising from levels below 97.2 last week.
The Japanese yen traded at 108.57 against the dollar after weakening from levels below 108 in the previous trading week, while the Australian dollar changed hands to $ 0.6906 after falling from levels above $ 0.702 last week.
Oil prices fell in the afternoon after Asian trading hours as international benchmark Brent crude futures slipped 0, 35% to $ 63.24 per barrel and US crude oil futures fell 0.16% to $ 56.11 per barrel.
Here's a look at what's emerging today:
- Taiwan Revenue: HTC  Japan Revenue: Hitachi, Tokyo Gas, Osaka Gas
– Reute's and CNBC's Fred Imbert contributed to this report.