The Nikkei share average fell 1.4 percent to 15,607.77 during mid-morning trade, ignoring data showing Japan's core machinery orders fell less than expected in February.
"While February's machinery orders fell less than anticipated, Japan markets remain weighed down by a strengthening yen and uncertainty surrounding when, or if, the Bank of Japan will intervene," said Andrew Meredith, co-managing director at Tyton Capital Advisors.
The yen climbed to a fresh 17-month high against the U.S. dollar during the morning session, adding pressure on Japanese authorities to do more to tame the currency's strength as it continues to pressure exporters and reverse the gains made by "Abenomics".
China stocks rose nearly 2 percent on Monday morning led by resources shares, as lower-than-forecast inflation data fanned optimism Beijing will continue with loose monetary policies.
The blue-chip CSI300 index rose 1.7 percent, to 3,241.22 points by the lunch break, while the Shanghai Composite Index gained 1.8 percent, to 3,039.41 points.
Chinese market gains had been curbed by fears that accelerating inflation would limit room for monetary easing, after the consumer price index (CPI) in February rose at its fastest pace in more than a year.
But the annual March consumer price figure came out surprisingly unchanged from the previous month at 2.3 percent, while wholesale prices remained stubbornly in deflation, down 4.3 percent, although the pace of decline eased.
"The CPI data is lower than expected, so investors now expect further monetary easing to come," said Zhu Bin, analyst at Southwest Securities Co.
Reference: Reuters
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