Most Asian stock closed lower following decline on Wall Street. Concerns the Fed may raise rates sooner than expected weighed on markets. The San Francisco Federal Reserve released a research report on Monday. The report showed that investors were underestimating the start of interest rate hike by the Fed.

Comments by China's Premier Li Keqiang weighed on markets in China. He indicated money-supply growth slowed in August.

Core machinery orders in Japan rose 3.5% in July, missing expectations for a 4.1% gain, after a 8.8% rise in June.

On a yearly basis, Core machinery orders in Japan climbed 1.1% in July, beating expectations for a 0.6% increase, after a 3.0% decline in June.

Indexes on the close:

Nikkei 225 15,788.78 +39.63 +0.25%

Hang Seng 24,705.36 -485.09 -1.93%

Shanghai Composite 2,318.31 -8.22 -0.35%