Asian Market Update

Asian markets fell on Monday as oil remained near five-year lows, while investors in Japan shrugged off Prime Minister Shinzo Abe's decisive re-election and focused instead on the faltering economy.

Sydney shed 0.64 percent 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.

Stocks on the Australian market dropped 33.5 points to close at 5,186.1, while in Tokyo the Nikkei 225 index closed down 1.57 per cent, or 272.18 points, at 17,099.40.

Seoul finished flat, falling 1.35 points to 1,920.36.

In afternoon trade Hong Kong lost 1.14 per cent while Shanghai was up 0.31 per cent.

Tokyo slipped after Mr Abe's widely expected election win in a snap poll on Sunday that he had billed as a referendum on his economic policies.