Shares in Tokyo and Hong Kong settled in the red on Monday as investors paused for breath after the recent run-up.

US non-farm payrolls data out on Friday had given stocks an early boost after it showed the world's biggest economy added jobs in December but by afternoon trading, the rally sparked by that and US lawmakers reaching a last minute deal to avoid the fiscal cliff crisis, fizzled out.

The benchmark Nikkei 225 index closed down 89 points at 10,599 in Japan while the Hang Seng eased 1 point at 23,329. Australia's S&P/ASX 200 touched a 19-month high of 4750 before settling 0.1% lower at 4717.

Exporters in Japan suffered a sharp sell-off on Monday as profit takers moved in.

Toyota Motor lost 1.8% while Honda Motor reduced 1.2%. Canon declined 2.6%, industrial robotics firm Fanuc tumbled 3.8% while Mazda bucked the trend with a 1% gain.

Shares of Softbank were in focus after reports that Clearwire is hoping to block its deal to buy 70% of Sprint Nextel.

Aozora Bank sank over 10% after a Reuters press report said that US buyout company Cerberus Capital Management is looking to sell the majority of its holding in the bank in a deal worth around $2.3bn.

Elsewhere in Japan, banks were mostly lower with shares of Mitsubishi UFJ Financial down 1.7% while Sumitomo Mitsui Financial nursed a 1.1% loss.

In Hong Kong shares settled flat as gains among property and resources sectors were countered by weakness among heavyweights such as China Mobile. China Overseas added 2.22%.

Banks were mixed on Monday with shares of HSBC ahead 1.3% while Standard Chartered bulked up 1%. Bank of China fell 0.55% and Bank of East Asia retreated 0.65%.



CJ

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