Asia markets closed lower on Wednesday, ahead of key central bank decisions from the U.S. Federal Reserve, the Bank of Japan (BOJ) and the Reserve Bank of New Zealand this week.
The Nikkei 225 retreated 62.79 points, or 0.4%, to 17,290.49.
The Hang Seng Index in Hong Kong deleted 45.67 points, or 0.2%, to 21,361.60
The Japanese yen traded at 111.13 to the U.S. dollar, compared with the 110 handle it touched Tuesday afternoon local time and the near-112 level it was at late last week.
Japanese banking stocks finished mixed, with shares of Mitsubishi UFJ down 1.4%, SMFG off 1.5% and Mizuho Financial up 0.2%
Elsewhere, the yen's relative strength on Wednesday, compared to levels it traded at last week, saw major exporters drop, with shares of Toyota closing down 1.8%, Nissan down 0.4% and Honda off by 1.3%. A stronger yen is a negative for exporters as it usually reduces their overseas profits when converted into the local currency.
Shares of Australia's so-called Big Four banks - ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac - ended down as much as 2.5%
The Australian dollar was around $0.7746 in early trade, compared with the $0.7698 level it briefly touched during Asian hours on Tuesday.
But the Aussie dollar then fell 1.8% to $0.7610, after Australia's consumer prices unexpectedly dropped, reviving talks of further easing from the Reserve Bank of Australia (RBA) in the months ahead.
Data from the Australian Bureau of Statistics showed headline consumer price index falling 0.2% in the first quarter of 2016, due to falling food and fuel prices. Reuters said the market was expecting a 0.3% increase. Annual inflation slowed to 1.3%, from 1.7% over the 12 months to the December 2015 quarter.
Energy plays in Asia closed mixed, with shares of Santos advancing 2%, Oil Search giving up morning gains to close up 0.1%, Woodside Petroleum dropping 2.8% and Inpex higher by 1.2%.
During Asian hours, shares of major Apple suppliers mostly fell, with shares of Catcher Technology closing down 1.3%, Alps Electric down 1.2% and Murata Manufacturing down 4.4%. Shares of Nidec advanced 1%, and Pegatron ended higher 0.4%.
CHINA
The Shanghai CSI 300 index eased 13.24 points, or 0.4%, to 3,165.92.
Chinese mainland energy plays mostly finished up, with shares of Sinopec advancing 1%.
In other markets;
In Taiwan, the Taiex Index docked 18.52 points, or 0.2%, to 8,581.57
In Korea, the Kospi index restored 5.08 points, or 0.3%, to 2,015.40
In Singapore, the Straits Times Index removed 19.94 points, or 0.7%, to 2,874.72
New Zealand’s NZX 50 lost 45.31 points, or 0.7%, to 6,750.41
The ASX 200 fell 32.94 points, or 0.6%, to 5,187.71
