Asian shares lower on negative Japan GDP 17 November 2014 Last updated at 06:59 Continue reading the main story Continue reading the main story Last Updated at 17 Nov 2014, 06:45 Last Updated at 17 Nov 2014, 07:26 $1 buys Asian markets traded lower on Monday on news that Japan's economy contracted for a second consecutive quarter, marking a recession. Gross domestic product (GDP) fell 1.6% from July to September, compared with the same period last year, below forecasts of a 2.1% rise. That followed a revised 7.3% contraction in the second quarter. The benchmark Nikkei index closed down almost 3% to 16,973.80 after hitting a seven-year high of 17,490.83 on Friday. Monday's finish was the biggest one-day drop for the Nikkei since August. The dollar briefly rose above 117 yen before it eased to 115.69 yen. Chinese shares traded mixed as investors cheered the first day of trading of the landmark Shanghai-Hong Kong stock connect scheme. The trading link will let international investors trade Shanghai-listed shares directly for the first time from the Hong Kong Stock Exchange. Also under the scheme, investors on the Chinese mainland will be able to trade in Hong Kong shares from the Shanghai Stock Exchange. The Hang Seng index was down 0.6% to 23,932.68, while the Shanghai Composite was up 0.5% at 2,490.61. In Australia, shares fell to three-and-a-half week lows despite news that Australia has reached a free trade deal with China and an agreement would be signed later in the day. China is Australia's largest trading partner. The benchmark S&P/ASX 200 index closed down 0.8% to 5,412.5 - its lowest since 24 October. South Korean shares were down 0.1%, with the Kospi at 1,943.63 points.