Asia markets were mixed on Monday as the U.S. and Canada announced that they had reached a deal to replace the North American Free Trade Agreement.
The Nikkei 225 ended the trading day higher by 0.52 percent at 24,245.76 while the Topix recovered to close largely flat at 1,817.96, as shares of major automakers such as Toyota and Nissan saw declines.
The moves in Tokyo came on the back of the release of a survey conducted by the Bank of Japan which showed business confidence among the country's big manufacturers falling for the third consecutive quarter.
"It was a slight disappointment, no doubt about it, on the Tankan survey, but again in the larger context (it was) still very close to 10-year highs," Divya Devesh, Asia foreign exchange strategist at Standard Chartered Bank, told CNBC's "Squawk Box" on Monday.
"At least for the next six to 12 months, there's no signs of (the) Bank of Japan even thinking about (a) policy exit," Devesh said.
In South Korea, the Kospi recovered partially from its losses but still closed lower by 0.18 percent, despite a private survey showing factory activity expanding in September for the first time since March. Shares of SK Innovation, however, surged 3.72 percent after the company said it was considering the establishment of an electric vehicle battery plant in the U.S.
Down Under, the ASX 200 slipped by 0.57 percent to close at 6,172.3, with most sectors in negative territory. The heavily weighted financial sector fell 1.33 percent, with shares of Commonwealth Bank of Australia sliding by 1.39 percent and AMP down by 2.19 percent.
The moves in the financial sector Down Under came on the back of an interim report by Australia's Royal Commission into misconduct in the banking and financial services industry, which included instances of bribery, fraud, fee-gouging and board-level deception within the sector.
The Chinese and Hong Kong markets were closed on Monday.