Asia markets were mostly down on Monday afternoon as investors attempted to shake off jitters about trade tensions between the United States and China.
In Australia, the benchmark ASX 200 fell 14.8 points, or 0.24 percent, to 6,210.4 as the heavily weighted financial sector declined 1 percent. Major banking stocks were lower.
Shares of Commonwealth Bank fell 2.3 percent. Before market open, Australia's largest lender said it would spin off its wealth management and mortgage broking businesses, and undertake a strategic review of its general insurance business, including a potential sale. At the same time, the bank also announced a series of appointments and changes to its executive leadership team.
Chinese mainland markets erased early gains to close down. The Shanghai composite fell 29.99 points, or 1.04 percent, to 2,859.76 while the Shenzhen composite lost 10.08 points, or 0.63 percent, to 1,587.3.
On Sunday, President Donald Trump doubled-down on his rhetoric on Twitter, calling on other countries to end all trade barriers or face a new round of retaliatory measures.
Last week, Trump requested the United States Trade Representative identify $200 billion worth of Chinese goods for potential additional tariffs at a rate of 10 percent. That threat followed levies announced by both nations earlier in the month. Consequently, Beijing said it could deliver its own set of new counter measures.
The uncertainty over a trade war, and the tit-for-tat dispute between the two countries, sent markets around the globe on a roller-coaster ride last week. Still, reports suggested that some White House officials were trying to restart talks with China to avoid a full-blown trade war.
"What is clear from weekend developments is that U.S. President Trump is unlikely to stop any time soon on his tariffs threats," analysts at Singapore's OCBC Bank said in a Monday morning note. "China's policymakers are stepping up to counter the tariff tantrum with domestic stimulus measures."
Indeed, the People's Bank of China said on Sunday that it would cut the amount of cash that some banks must hold as reserves by 50 basis points, releasing $108 billion in liquidity, to spur lending to smaller firms, according to Reuters. The Chinese central bank said the targeted cut will take effect on July 5, the report said.
The on-shore yuan fell against the dollar with the pair trading at 6.5348 at 3:42 p.m. HK/SIN, weakening from an earlier high of 6.4999. The off-shore yuan also weakened against the dollar, trading at 6.5449.
Elsewhere, the dollar index traded at 94.641 at 3:43 p.m. HK/SIN, climbing from an earlier low of 94.452. Still, the index, which measures the greenback against a basket of currencies, was below levels around 94.8 reached in the previous week.
Meanwhile, the Turkish lira traded at 4.5718 at 2:57 p.m. HK/SIN, off an earlier high of 4.5320. That followed reports that said President Tayyip Erdogan had 56.5 percent of the vote with half of the votes counted in Turkey's presidential election on Sunday.
OPEC ministers announced a deal on Friday that will increase oil supplies from the oil cartel, following a week of tense negotiations in Vienna, Austria. The producer group had been capping output in order to balance the market and boost prices for the last 18 months. The lack of clear output targets left markets confused.