Asian Market Update

Asian markets fell Monday as a relentless plunge in oil prices exerted downward pressure, while investors in Japan shrugged off Prime Minister Shinzo Abe's decisive re-election and focussed instead on the faltering economy.

Sydney shed 0.89 per cent as a hostage crisis erupted in the heart of the city, with terrified people cowering inside a cafe where an Islamic flag was displayed against a window, sparking a security lockdown in an area home to government and corporate headquarters.

In early trade Hong Kong lost 1.12 per cent, Shanghai slipped 1.14 per cent and Seoul was 0.66 per cent lower.

Tokyo dropped 1.31 per cent by noon after Abe's widely expected election win in a snap poll on Sunday that he had billed as a referendum on his economic policies.