Asian markets begin the week with their heads down on disappointing Chinese data released over the weekend.

The second largest economy saw its manufacturing sector downsize, with its Purchasing Managers' Index (PMI)  slipping to 49.8 percent last month, a fresh low since September 2012. This reads slightly below the 50pt. threshold that delineates an expansion from a contraction.

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The PMI is an economic indicator of a country's manufacturing sector, a composite index of five indicators: the country's production level, new orders from customers, supplier deliveries, inventories and employment level. It takes into account more than 400 purchasing managers' responses.

In addition, the U.S. announced weak fourth-quarter economic growth due to fragile business spending and a wider trade deficit, and Greece sought allies to support its new debt agreements.

"The combination of softer U.S. data, the disappointing China PMI and the fact that Greece is now very much on a collision course with the rest of Europe over its budget should continue to weigh on risk sentiment in Asia," Westpac Global Strategy Group said in a note to clients.

MSCI's biggest of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.1 percent, while Japan's NIKKEI stock average .N225 fell 0.7 percent in early trade.

Meanwhile, U.S. shares pared losses over weak overseas demand and expectations of oil supply decline. The Standard & Poor's 500 index (S&P 500) shed 26.26 pts. to close at 1,994.99 as the Dow Jones industrial Average index (DJIA)  likewise shrank by 251.90 pts. to 17,164.95, and the NASDAQ index dipped 48.17 pts. to 4,635.24.

The dollar/USD rate slipped to 117.22 yen, as investors flocked to the 'safer' Japanese currency, and subsequently pushed the euro down to 132.45.

Falling U.S. Treasury yields also saw investors seeking refuge in fixed-income assets with the benchmark 10-year yield  tumbling to 1.652 percent from the US close of 1.68 percent last Friday in Asian trading.

Oil prices retreated once again with the US crude CLc1 collapsing 1.9 percent to $47.32 per barrel and the benchmark Brent LCoc1 declining 1.6 percent to $52.13 a barrel.

TagsAsian Investors, China Growth Prospects, Manufacturing