Asian stock markets closed sharply lower in Monday trading on concerns about Greece's failure to meet a deficit reduction target set by European leaders as part of a bailout deal.

Tokyo's Nikkei index dropped 1.8 percent to close at 8,545.

Hong Kong's Hang Seng index lost 4.5 percent to end at 16,806.

Elsewhere, share prices were lower in Taipei, Sydney, Wellington and Manila. Shanghai markets were closed for a week-long holiday.

The dollar was selling at 76.94 yen, down a tenth of a yen from late Friday.