Australian shares are expected to start a shortened week lower after the coronavirus outbreak struck futures markets, putting investors on notice for large falls in Asian equities when regional markets return to trading from the lunar new year holiday.

In limited activity on Monday, Japan's Nikkei 225 Index fell 1.96 per cent to 23,361 points and Wall Street was on track for a decline of 0.99 per cent for the S&P 500, and 1.3 per cent for the Nasdaq.