Asian markets ended sharply lower Monday, ahead of central bank meetings in the U.S. and Japan this week and amid jitters over the upcoming referendum on whether the U.K. would remain in the European Union.
In Japan, the Nikkei 225 collapsed 582.18 points, or 3.5%, to 16,019.18, as fresh strength in the yen pressured stocks, with major exporters selling off. Shares of Toyota, Nissan, Honda and Sony closed down as much as 4.2%
In Hong Kong, the Hang Seng Index jettisoned 529.65 points, or 2.5%, to 20.512.99
The yen strengthened against the greenback ahead of the Bank of Japan's (BOJ) two-day policy meeting starting June 15. Additionally, the yen is considered a safe-haven currency and increased concerns over the risk of a Brexit may be driving funds into the currency.
The currency pair traded at 105.83 Monday compared with levels around 106.80 on Friday afternoon.
Energy plays in the region closed down, with Inpex off by 5.8%, Fuji Oil down 3.3% and Japan Petroleum losing 5.4%.
In company news, South Korea's Hotel Lotte, part of the Lotte Group conglomerate, said it is withdrawing its initial public offering (IPO) plan and will postpone the listing, reported Reuters. The IPO was expected to raise up to $4.5 billion U.S.; last week, prosecutors raided Lotte Group firms as part of an ongoing investigation
Shares of Lotte Shopping, also part of the conglomerate, closed down 5.4%
CHINA
The Shanghai CSI 300 returned from a long weekend to drop 97.65 points, or 3.1%, to 3,066.34
Chinese mainland oil plays were also lower, with Sinopec off by 4% and China Oilfield down 2.8%
Investor confidence likely took a hit after official data released earlier on Monday showed China's fixed-asset investment growth eased to 9.6% on-year in the January-May period. Analysts had expected investment growth of 10.5% for the period.
In other markets
In Korea, the Kospi docked 38.57 points, or 1.9%, to 1,979.06
In Singapore, the Straits Times Index doffed 37.54 points, or 1.3%, to 2,785.43
In Taiwan, the Taiex index skidded 179.26 points, or 2.1%, to 8,536.22
In New Zealand, the NZX 50 fell 47.51 points, or 0.7%, to 6,924.27
Markets in Australia were closed for the Queen's Birthday public holiday.
