Asia markets were mostly lower amid rising doubts over U.S. President Donald Trump's ability to pass legislative reforms after Republican leaders pulled a bill to overhaul the U.S. health care system.
"The risk that markets are confronted with is one of Trump's deal-making claims succumbing to policy paralysis on Capitol Hill," explained Vishnu Varathan, senior economist at Mizuho Bank, in a Monday note.
The dollar weakened from a high of 100.00 seen last Friday to around 99.295 against a basket of currencies, at a near two-month low. Spot gold, viewed as a safe-haven asset, was trading higher at $1,258.35 an ounce, at a multi-month high.
Japanese benchmark Nikkei 225 dropped 1.44 percent or 276.9 points to close at 18,985.59, as risk-off sentiment prompted a rush to safe haven bids such as the yen.
Shares of Toshiba tumbled 2 percent to 26,885 yen per stock after local media reports that Toshiba's U.S. subsidiary Westinghouse may file bankruptcy on Tuesday and seek support from Korea Electric Power.