Asian markets fall on weak Japan factory data

Japan's benchmark Nikkei 225 Index fell 0.8% to close at 16,173 points after data showed the country's industrial output unexpectedly fell.

Manufacturing output fell 1.5% in August from a month earlier. Economists had expected a 0.2% gain.

South Korea also reported a 3.8% drop in factory output for August, marking its worst monthly fall since 2008.

Investors remain on edge over tensions in Hong Kong, where pro-democracy protestors have taken to streets.

Hong Kong's Hang Seng closed 1.3% lower on Tuesday at 22,932.98, after a 1.9% fall on Monday.

The string of losses translate into a 7.3% fall for the Hang Seng index for the month of September - where the Hong Kong market only chalked up five winning sessions out of 21 trading days.

Markets in Hong Kong will be shut on Wednesday and Thursday for public holidays.

Investors in China are less rattled by the protests in Hong Kong. The mainland's benchmark Shanghai Composite Index closed up 0.2% at 2,363.87 points.

Japan's weak manufacturing figures come as the country's prime minister, Shinzo Abe, weighs a second increase to the unpopular sales tax, adding to worries about the state of the economy.

Aside from factory data, Japan also released mixed retail sales, household spending and unemployment numbers on Tuesday.

Retail sales rose 1.9% in August from a month earlier, above forecasts. However, household spending fell for its fifth straight month by 0.3%.

The jobless rate fell in August, while the availability of jobs stayed at a 22-year high.

Marcel Thieliant, Japan economist at Capital Economics said: "Today's data are unlikely to dispel concerns about the pace of recovery from last quarter's slump.

"We think the weakness in output since the beginning of the year will take its toll on the job market in coming months," he added.

"Accordingly, we expect the unemployment rate to climb to 4% by the end of the year."