Asian markets were trading mixed on Tuesday as investors stayed cautious ahead of company earnings reports.
A strong US dollar and economic woes in Europe could have had an impact on profits for firms in the third quarter, according to analysts.
In Japan, the benchmark Nikkei 225 closed 0.7% lower at 15,783.83 after the Bank of Japan (BOJ) painted a bleaker outlook for the economy.
The Japanese yen weakened against the dollar, rising to 109.10.
The BOJ maintained its massive monetary easing plans, but said that weak consumer spending was impacting factory output and business sentiment.
“It’s true the effect [of the sales tax hike] on the economy is being prolonged. There’s also the effect of bad summer weather,” said BOJ Governor Haruhiko Kuroda.
In Hong Kong, stocks inched higher as pro-democracy protests in the city started to taper.
The Hang Seng Index gained 0.4% to close at 23,408.19.
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