Most Asian stock markets ended lower Monday on worries about high oil prices' impact on global growth, with Japanese shares reversing early gains as the yen's rebound led investors to lock in profits.
Mainland Chinese stocks extended its string of gains amid improved liquidity after Beijing's monetary easing earlier this month, with automobile companies leading the charge.
Hong Kong's Hang Seng Index fell 0.9% to 21217.86, South Korea's Kospi lost 1.4% to 1991.16, Australia's S&P/ASX 200 index dropped 0.9% to 4267.4 and Japan's Nikkei Stock Average gave up 0.1% to 9633.93.
China's Shanghai Composite, though, rose 0.3% to 2447.06.
"Momentum is slowing down—there is some caution in the air as the market refocuses attention on higher oil prices," said Tom Kaan, director of equity sales at Louis Capital Markets in Hong Kong.
April Nymex crude oil futures stayed above $109 a barrel. Although they eased a little in electronic trading during Asian hours Monday, the prices are still up more than 10% so far in February. Mr. Kaan said a further rise could cause "a short-term reversal of the recent rally. Higher oil prices will impact on inflation."
U.S. stock index futures were lower, with Dow Jones Industrial Average futures off 11 points.
The retreat in Tokyo came as the U.S. dollar gave up some of its recent gains against the yen, prompting investors to take profits. Shares of Fanuc dropped 1.5%, Komatsu fell 0.6% and Nikon shed 1.7%.
Concern that elevated oil prices would hurt the global economy and weaken the U.S. recovery weighed on sentiment.
In Seoul, shares of Hyundai Motor gave up 3% and Asiana Airlines dropped 2.2%, while in Hong Kong Cathay Pacific Airways fell 4.4%.
Some energy producers also fell on a pullback in oil prices, with Woodside Petroleum and Santos each falling 0.5% in Sydney. Inpex lost 2.5% in Tokyo and PetroChina fell 0.5% in Hong Kong.
Caltex Australia dropped 0.6% in Sydney as the company swung to a steep annual loss after writing down the value of its two refineries.
Shares of mainland car companies bucked the broad weakness, following news that only Chinese-branded vehicles would qualify for use by the government under a preliminary 2012 list of procurement choices released during the weekend. In Hong Kong, BYD Co. climbed 2.6% and Geely Automobile Holdings gained 3.8%. Anhui Jianghuai Automobile rose by the day's 10% limit in Shanghai, while FAW Car gained 2% in Shenzhen.
The fall for Australian stocks came even as some political uncertainty dissipated when Prime Minister Julia Gillard defeated her predecessor Kevin Rudd in a leadership challenge.
Stronger metal prices on Friday supported some commodity-linked stocks across Asia, with Fortescue Metals Group up 0.4% and Eldorado Gold 2% higher.
Gold producer Newcrest Mining fell 3% after some brokers downgraded the stock.
