Markets across Asia tumbled, with Hong Kong off almost 2 per cent, while Shanghai, Singapore, Seoul, Wellington, Taipei, Mumbai, Bangkok and Jakarta also retreated.
Shares in Hanwha dropped more than 5 per cent in Seoul.
The selling also came amid growing concerns that the AI-fuelled rally in stocks this year – which has helped push several markets and companies to record highs- may have been overdone and a bubble is forming.
“Given the recent rally, positioning was stretched (and) any bad news is a cue to sell risk … which indicates the market is looking for an excuse for a selloff,” said Neil Wilson of Saxo Markets.
“The extent of the selling could be the cue for the last bears to throw in the towel.”
Tokyo dived 3 per cent at one point as investors returned from a long weekend, also focusing on political uncertainty in Japan, where the ruling coalition collapsed Friday as junior partner Komeito quit the alliance.
The move imperilled Takaichi’s chances of becoming premier, having been elected the ruling party’s leader this month. Stocks had surged after her election on hopes she would unveil fresh stimulus measures and push for looser monetary policies.
It was reported over the weekend that Komeito will seek to support a unified candidate with other groups in a bid to stop Takaichi – who needs approval from parliament – from becoming premier.
In commodities trade, gold and silver sank soon after they both touched records.
Silver had earlier in the day struck a peak of US$52.90 as investors sought other safe havens, as gold continued to hit new highs, at one point reaching US$4,179.70.
Oil was also sharply lower on renewed worries about a revival of the China-US trade war.
