Chinese stocks fell despite government stimulus which cut reserve requirements for the second time this year.
The People's Bank of China (PBoC) reduced the amount of money banks must set aside as reserves by one percentage point in a bid to spur more lending.
The announcement on Sunday came in the wake of data showing the country grew at its slowest pace in six years.
Hong Kong's Hang Seng fell 2.02% to 27,094.93, while the Shanghai Compositelost 1.64% to 4,217.08.
Mark Williams, chief Asia economist at Capital Economics, said China acted because "downside risks to growth appear greater now.
"The decision is a response to the weakness of recent economic data. Most of the activity and spending data for March came in below consensus.
"Further reserve-requirement ratio (RRR) cuts are likely - perhaps another 150 basis points before the end of the year - along with at least one more cut to benchmark interest rates," he said.
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