Asian markets fall on weak Japanese factory data

Japan's benchmark Nikkei 225 Index is trading 1.5% lower after data showed the country's industrial output unexpectedly fell. Manufacturing output fell 1.5% in August from a month earlier. Economists had estimated a 0.2% gain.

South Korea also posted a 3.8% drop in factory output for August, marking its worst monthly fall since 2008. Investors remained on edge over tensions in Hong Kong, where pro-democracy protestors have taken to streets.

Hong Kong's Hang Seng fell 1.4% on Tuesday, logging its second straight day of declines. It closed down 1.9% on Monday. Seoul's Kospi, Singapore's Straits Times Index and Taiwan's stock markets are also in negative territory.

The regional benchmark index, MSCI Asia Pacific, is down 0.6% in Tokyo and is headed for its steepest monthly drop since May last year. Japan's manufacturing output has been losing steam after April's sales tax.

Japan's weak manufacturing figures come as the country's prime minister, Shinzo Abe, weighs a second increase to the unpopular sales tax, adding to worries about the state of the economy.

The sales tax increase led Japanese consumers and business to pull back from spending, causing economic growth to shrink sharply.

Apart from factory data, Japan also released mixed retail sales, household spending and unemployment numbers on Tuesday. Retail sales rose 1.9% in August from a month earlier, above forecasts.

- BBC