Asian markets are suffering losses as the deteriorating situation in Iraq weighs on investor sentiment. Crude futures received a boost after US President Barack Obama said he would send 300 military advisers to Iraq.
Japanese shares were flat after a Reuters poll showed over half of businesses said they would consider investing in capital expenditure.
Sumitomo Precision Products was given a boost on reports it plans to increase its shale gas business by 60 per cent in three years.
Shares in China took a hit as investors feared tight liquidity after a host of initial public offerings. HSBC's preliminary manufacturing data for June will be released on Monday.
South Korea's Kospi was weighed down by falls in Hyundai and Kia motors. In Australia, gold miners had a good run after the price of the yellow metal rose to a two-month high overnight.