Picture used for illustrative purpose. File

Asian equities struggled Monday following last week's painful sell-off, with a mixed US jobs report offsetting a pledge from Federal Reserve boss Jerome Powell that interest rates would remain rock-bottom for years.

China-US tensions and a lack of progress in Washington stimulus talks -- all against the backdrop of the coronavirus pandemic -- were keeping markets from surging.

Tokyo closed 0.5 percent lower with SoftBank plunging more than seven percent after reports said the conglomerate had been engaging in high-risk derivatives trading of tech shares in New York. 

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The Financial Times said the firm had "stoked the fevered rally in big tech stocks" that helped the Nasdaq rocket higher since March.

Shanghai was down one percent, while Hong Kong dropped 0.5 percent a day after fresh unrest in the city as pro-democracy demonstrators clashed with police on a day that cancelled elections were due to take place.

But Sydney was marginally higher, while Seoul, Wellington and Manila were also in positive territory.

Investors were also keeping tabs on the European Central Bank's next board meeting Thursday and poring over boss Christine Lagarde's news conference, looking for clues of possible policy changes.

Agence France-Presse