Australia's ASX 200 fell 0.8 percent or 45.4 points to close at 5,609.4, as its industrials sub-index dropped 3.97 percent.
Logistics company Brambles plunged 15.8 percent, after the company downgraded its earnings guidance for the six months ended 31 December 2016, over concerns for its North American operations.
The company expects sales revenue growth at 5 percent, compared to the previous guidance of 7 to 9 percent, and underlying profit growth to be around 3 percent, compared to the earlier forecast of 9 to 11 percent.
Japan's Nikkei 225 shed 1.29 percent or 246.9 points at 18,891.03, weighed by the advancing yen as the dollar/yen pair slipped below the 114 handle.
Toshiba shares surged 9 percent, after several media reports that it is in the midst of preparing for the sale of its semiconductor business.
Other major exporters in Japan were hit by the stronger currency. Toyota Motor fell 1.63 percent, Honda Motor lost 1.72 percent, while Sony was off 1.15 percent and Panasonic was down 1.62 percent.
In South Korea, the Kospi closed flat at 2,065.99, as the political saga continues with President Park Geun-hye's culture minister and her former presidential adviser arrested on Saturday over allegations that they blacklisted artists critical of the government, Reuters reported.
Samsung Electronics was up 1.56 percent as it finally identified what went wrong with its Galaxy Note 7 handsets that led to one of the worst technology recalls in recent times, a day before its full-year earnings, with the assembly process in layering the batteries and issues in the manufacturing end responsible, the company said on Monday.
The South Korean electronics giant also filed a compensation suit against Sharp and Kuroda Electric in response to their decision to halt LC panel supplies to the company. Shares of the Japan-listed Sharp jumped 2.69 percent but Kuroda Electric fell 1.81 percent.
Mainland Chinese shares were positive: the Shanghai composite closed up 0.43 percent or 13.5 points at 3,136.64 while the Shenzhen composite closed up 0.87 percent or 16.37 points at 1,902.14. Hong Kong's Hang Seng was flat by mid-afternoon, earlier trading up as much as 0.8 percent.