Asian shares fell on Tuesday ahead of a highly-anticipated speech by British premier Theresa May on plans for Brexit and as China's President Xi Jinping gets set to speak on economic policy in Davos ahead of the inaugural speech by President-elect Donald Trump at the end of the week.
The Shanghai Composite Index eased 0.27%, while Hong Kong's Hang Seng Index edged up 0.41%. The S&P/ASX 200 dipped 0.85% while the Nikkei 225 dropped 1.18%.
The yen traded at 114.12, retreating from an earlier session high of 113.81, but climbing from levels above 116 to the dollar in the previous week on safe haven demand.
U.S. markets were shut on Monday for a public holiday.
In her speech, May is expected to outline plans for the United Kingdom's plans to exit the European Union. On Monday, the British pound fell to three-month lows, following local media reports that suggested May will announced a "clean" and "hard" Brexit, pulling the country from the European market and the European customs union, in exchange for the ability to control immigration laws and leave the jurisdiction of the European Court of Justice.