The Hang Seng Index slipped 1.1 percent, to 25,821. The stock exchanges in Shanghai and Shenzhen are closed for holidays.
Shares of Hong Kong property firms were the worst hit, as demonstrators took to the streets again to protest the imposition of a law banning face masks following months of sometimes violent protests.
Henderson Land, Sino Land, Swire Properties and New World Development all lost more than one percent.
“It’s the response from protesters to whatever is going to be decided that matters,” Jessie Guo, equity research strategist at China Merchants Securities, told Bloomberg News. “The market is concerned that protesters are going to carry on.”
Around Asia, Tokyo rose 0.3 percent, Sydney was up 0.4 percent, Seoul fell 0.6 percent, Taipei added 0.2 percent and Wellington gained 0.7 percent.
Manila rallied more than 1 percent, while there were also gains in Jakarta and Bangkok.
Mumbai fell 0.7 percent after the Indian central bank announced a rate cut as expected but also slashed its economic growth outlook.
The prospect of lower rates weighed on the US dollar, which was down against most higher-yielding, riskier currencies such as the South Korean won and Indonesian rupiah.
It was also off against the pound, despite uncertainty about the outlook for Britain’s economy after Prime Minister Boris Johnson’s latest Brexit plan failed to win over the EU, just weeks before the October 31 Brexit day. (AFP)