Oil prices have tumbled again while most Asian stock markets also retreated after a sell-off in New York at the end of last week in response to data showing weak US wage growth.
The news on wages, which overshadowed another forecast-beating rise in job creation, pushed the US dollar down against the euro because it complicates the Federal Reserve's plans to raise interest rates.
Sydney fell 0.78 per cent, or 42.9 points, to close at 5,422.7 and Seoul closed 0.19 per cent lower, or 3.75 points, at 1,920.95.
Shanghai - which has surged more than 50 per cent over the past year - slipped 1.71 per cent, or 56.09 points, to 3,229.32.
However, Hong Kong edged up 0.45 per cent, or 106.51 points, to 24,026.46 thanks to a surge in market heavyweight Cheung Kong Holdings after it unveiled a multi-million-dollar restructuring plan last week.
Tokyo was closed for a public holiday.
Weak demand and a supply glut sent crude to new five-and-a-half-year lows, with analysts tipping further losses this week.
The US benchmark, West Texas Intermediate for February delivery, lost $US1.06 to $US47.30 a barrel, while Brent was down $US1.32 to $US48.79.
Singapore's United Overseas Bank said in a commentary: 'Oil prices continued to tumble and headed for a seventh straight weekly loss as key producers show no sign of cutting output in the face of a supply glut.'
Crude prices have lost more than half their value since the middle of last year, with weakness in key markets China and the eurozone adding to the supply and demand crisis.
Wall Street provided a negative lead for stock markets after figures showed US wages grew 1.7 per cent year-on-year in December, barely keeping up with inflation and indicating consumer spending power remained low.
The Dow slipped 0.95 per cent on Friday, the SP 500 fell 0.84 per cent and the Nasdaq lost 0.68 per cent.
Traders latched on to the data, ignoring the fact that unemployment fell to 5.6 per cent, the lowest level in six and a half years, while 252,000 new posts were created in December to cap the best year for job creation since 1999.
'Despite the robust US jobs data, markets chose to focus on the weak wages growth and the likelihood that it will keep the Fed Reserve 'patient' about any rate hike,' United Overseas Bank said.
Economists took the report as allowing the Fed to delay raising interest rates.
This dented speculation of an increase in April and made the US dollar less attractive to investors.
'This tug of war between deflation and expectations of the first rate hike in many years by the US Fed is likely to result in intense volatility,' Nader Naeimi, at AMP Capital Investors in Sydney, told Bloomberg TV.
In Asian trade the US dollar bought 118.48 yen compared with 118.46 yen on Friday in New York.
The euro fetched $US1.1846 against $US1.1842, while it was also at 140.22 yen compared with 140.29 yen.
Gold cost $US1,222.03 an ounce, compared with $US1,211.42 on Friday.
In other markets:
- Mumbai rose 0.46 per cent, or 126.89 points, to end at 27,585.27.
Hindustan Unilever rose 3.84 per cent to 896.65 rupees, while Coal India fell 4.54 per cent to 358.70 rupees.
- Bangkok rose 0.12 per cent, or 1.79 points, to 1,531.21.
Bank of Ayudhya soared 11.00 per cent to 55.50 baht, while petrochemicals company IRPC gained 8.33 per cent to 3.38 baht.
- Jakarta closed down 0.55 per cent, or 28.73 points, at 5,187.93.
Palm oil producer Astra Agro Lestari fell 0.67 per cent to 25,800 rupiah, while cigarette maker Gudang Garam Tbk rose 0.17 per cent to 60,100 rupiah.
- Singapore rose 0.19 per cent, or 6.45 points, to 3,344.89.
Oil rig maker Keppel Corp fell 0.96 per cent to Sg$8.29, while Singapore Airlines was up 2.80 per cent to Sg$12.50.
- Malaysia's main stock index inched 2.64 points higher, or 0.15 per cent, to close at 1,735.08.
Infrastructure and construction conglomerate YTL Corp gained 2.42 per cent to end at 1.69 ringgit, as the CIMB banking group fell 2.63 per cent to close at 5.18 ringgit.
- Taipei fell 0.40 per cent, or 37.28 points, to 9,178.3.
Taiwan Semiconductor Manufacturing Co eased 1.49 per cent to Tw$132.0, while Hon Hai Precision Industry was 0.92 per cent lower at Tw$85.7.
- Wellington rose 0.45 per cent, or 24.96 points, to 5,609.80.
Contact Energy was up 1.73 per cent at NZ$6.47 and Spark rose 0.32 per cent to NZ$3.16.
- Manila closed 0.60 per cent lower, giving up 44.36 points to end at 7,358.36.
Ayala Land fell 2.86 per cent to 34 pesos while Metropolitan Bank and Trust slipped 0.56 per cent to 88 pesos.
