Asia stocks decline; Nikkei ends down 1.4% on stronger yen

Asian stock markets were lower on Monday, amid concerns the Federal Reserve will start to taper off its bond-buying program by the end of this year.

During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.9%, Australia’s ASX/200 Index ended 0.7% lower, while Japan’s Nikkei 225 Index closed down 1.4%.

The Department of Labor said Friday the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. 

May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June.

Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.

In Tokyo, the Nikkei reversed earlier gains to close lower as the U.S. dollar weakened against the yen, weighing on exporters.

USD/JPY fell to hit a session low of 100.92, moving off the previous session’s five-week high of 101.52. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.

Toyota and Honda saw shares fall 1% and 2.1% respectively, while Sony and Sharp retreated 2% and 1.9% apiece.  

Japanese megabanks were also lower, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group falling 1.3%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group lost 1.9% and 1.4% respectively.

Meanwhile, in Australia, the benchmark ASX/200 Index ended lower as miners declined amid falling metal prices.

Newcrest Mining saw shares plunge 7.8%, Fortescue Metals Group fell 1.8%, while BHP Billiton and Rio Tinto dropped 2.1% and 2%.

Elsewhere, in Hong Kong, the Hang Seng tumbled, tracking heavy losses in mainland China markets.

The China banking sector were among the biggest losers on the index, with China Construction Bank shares falling 2.5%, Industrial and Commercial Bank of China slumping 2.7% and China Minsheng Bank declining 1%.

Looking ahead, European stock market futures pointed to a lower open.

The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures dipped 0.1%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a decline of 0.1% at the open.

Later in the day, Germany was to produce official data on industrial production, while the eurogroup of euro zone finance ministers were to hold talks in Brussels.

In addition, ECB President Mario Draghi was to testify before the committee on Economic and Monetary Affairs in the European Parliament in Brussels.