Regional markets lower

Stocks in Asia Pacific traded lower in the morning as tensions between the U.S. and China continue to weigh on investor sentiment.

Japan’s Nikkei 225 average slipped by 0.37 percent in early trade while the Topix index dipped by 0.16 percent.

Japan’s economy shrank by 27.8 percent on an annualized basis in April-June, according to government data released Monday. That was the sharpest contraction on record, according to Reuters. The preliminary reading for Japan’s second-quarter gross domestic product compared against economists’ median estimate of a 27.2 percent decline, Reuters reported.

Shares in Australia also declined, with the S&P ASX/200 down by 0.27 percent.

Overall, the MSCI Asia ex-Japan index traded little changed.

Markets in South Korea are closed on Monday for a holiday.