Most Asian stock closed lower as U.S. President Barack Obama has authorised airstrikes against militants in Iraq.

The better-than-expected trade data from China trimmed some losses on markets. China's trade surplus rose to $47.30 billion in July from $31.6 billion in June. Analysts had expected to narrow to $26 billion.

The Bank of Japan released its interest rate decision. The BoJ's interest rate remained unchanged at 0.10%. Japan's central bank will continue to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen.

Japan's adjusted current account balance decreased to 125.6 billion yen in June from 384.6 in May, beating expectation for a fall to 110.0 billion yen.

Nikon Corp. shares declined 9.4% as the company lowered its full-year forecast.

Nippon Electric Glass Co. fell 8.8% after the company cut its nine-month net-income forecast.

Indexes on the close:

Nikkei 225 14,778.37 -454.00 -2.98%

Hang Seng 24,331.41 -56.15 -0.23%

Shanghai Composite 2,194.42 +6.76 +0.31%