With a U.S. carrier group headed to the Korean peninsula, China's President Xi Jinping and President Trump spoke by telephone about pursuing a peaceful resolution to increasing tensions with North Korea.
China's influential Global Times newspaper says the Korean peninsula is the closest to a "military clash" as it's been since North Korea's first nuclear test, in 2006. The country may be conducting another test this week.
Xi stressed to Trump that China is "committed to the target of denuclearization on the peninsula, safeguarding peace and stability on the peninsula, and advocates resolving problems through peaceful means," according to state broadcaster CCTV.
The Nikkei was off 1% amid strength in the yen, with Shanghai also 0.5% lower, and Hang Seng up 0.7%.