Asian stocks declined on Monday while the euro rose against the dollar as French elections resulted in unprecedented political uncertainty.
A leftist alliance emerged as the surprise winner of the legislative elections, leading to a fragmented parliament with three major groups - left, centre and far-right.
Meanwhile, after last week\'s weak U.S. jobs data, investors looked ahead to the release of U.S. and Chinese inflation figures as well as Fed Chair Jerome Powell\'s testimony due this week for additional clues on the Fed\'s monetary policy path.
Oil and gold prices traded lower in Asian trade while the dollar hovered near three-week lows.
China\'s Shanghai Composite index dipped 0.93 percent to 2,922.45 as investors braced for one of the country\'s biggest annual policy meetings.
Hong Kong\'s Hang Seng index slumped 1.55 percent to 17,524.06 ahead of China\'s inflation data for June due on Wednesday.
Japanese markets retreated from record highs in choppy trade as data showed real wages in the country fell for a 26th straight month.
The Nikkei average hit a record high of 41,112.24 before reversing course to end the session down 0.32 percent at 40,780.70. The broader Topix index closed 0.57 percent lower at 2867.61.
Heavyweights SoftBank and Fast Retailing both ended around half a percent higher while electrical equipment maker Yaskawa Electric plunged 4.4 percent to lead losses.
Seoul stocks ended slightly lower in volatile trade, with the Kospi average falling 0.16 percent to 2,857.76 ahead of Fed Chairman Jerome Powell\'s congressional testimony and the release of U.S. CPI data for June due later in the week.
The Bank of Korea\'s rate-setting meeting on Thursday was also on investors\' radar.
Samsung Biologics fell 1.4 percent while market bellwether Samsung Electronics edges up 0.3 percent and top automaker Hyundai Motor rose 0.7 percent.
Australian markets fell notably, with miners underperforming as iron prices slumped on concerns over Chinese demand and oversupply.
The benchmark S&P/ASX 200 dropped 0.76 percent to 7,763.20 while the broader All Ordinaries index ended down 0.72 percent at 8,012.20.
BHP, Rio Tinto and Fortescue Metals Group lost 2-3 percent. Rex Minerals jumped 56.4 percent after receiving a takeover bid from MACH Metals Australia.
Across the Tasman, New Zealand\'s benchmark S&P/NZX-50 index fell 0.42 percent to 11,745.53 ahead of Reserve Bank of New Zealand\'s monetary policy review due Wednesday.
U.S. stocks rose Friday while Treasury yields retreated after the release of key labor market data.
While employment jumped by more than expected in June, the report showed downward revisions to job growth in April and May as well as another unexpected uptick in the unemployment rate for the third straight month, fueling speculation the Fed will lower interest rates in the near future.
The tech-heavy Nasdaq Composite climbed 0.9 percent and the S&P 500 added half a percent to end higher for the fourth straight session and reach new record closing highs while the Dow edged up 0.2 percent.