Asian shares slipped on Tuesday while the euro hit a fresh one-year low on uncertainty over the European Central Bank's policy decision later this week.
MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.4 percent after managing to carve out gains on the previous day.
The U.S. labor market holiday on Monday kept investors subdued in Asia. The mood was also tempered by the persistent geopolitical concerns and weak manufacturing surveys in Asia and Europe showing pockets of weakness in the global economy.
Stocks outside Japan Drop
Asian stocks outside Japan dropped as South Korean manufacturers dragged the gauge lower. Tokyo's Nikkei (.N225) bucked the trend and rose 1.2 percent, with a planned cabinet reshuffle by Prime Minister Shinzo Abe helping fuel reform hopes.
Hyundai Motor Co. (005380) fell 2.6 percent after South Korea’s biggest carmaker reported lower sales for August and Samsung Electronics Co., the world’s largest smartphone maker, headed for a two-year low. China Modern Dairy Holdings Ltd. slipped 2.3 percent in Hong Kong while Nintendo Co., a maker of gaming consoles that gets most its sales outside Japan, gained 2.7 percent.
South Korea’s Kospi index and Taiwan’s Taiex index lost 0.8 percent. New Zealand’s NZX 50 Index slid 0.1 percent. Hong Kong’s Hang Seng Index dropped 0.6 percent. China’s Shanghai Composite Index added 0.3 percent. Singapore’s Straits Times Index gained 0.1 percent.
The euro slipped to a fresh one-year low of $1.3117 while the U.S. dollar, boosted by the flagging euro and gains in Tokyo shares that dented the appeal of the safe-haven yen, rose to a seven-month high of 104.76 yen.