Japan was the worst performer in the region with the Nikkei 225 crashing 3.56%. On the other hand, the Topix index was also down 2.52%.
Most sectors in the land of the rising sun were trading in the deep red, as shares of automakers such as Nissan Motor Company, Ltd. and Honda Motor Co Ltd crashed more than 4% each. Shares of Fanuc Corp slumped 5.35%. Among financial institutions, Mitsubishi UFJ Financial Group Inc shares fell 2.61% and Mizuho Financial Group, Inc. was down 2.35%.
Across the ocean, in Australia, the mood was not much different, with the ASX200 falling 1.83%. Japan and Australia are two of the major markets to start trading and setting tempo for trade across the world.
Elsewhere in Asia, the Hang Seng index of Hong Kong was down 83 basis points (bps). On the other hand, in Taipei, the Taiwan Weighted index was down 1.25%.
However, the Mainland Chinese stocks seemed unfazed from the global sell-off as the shares in the country traded in the green: the Shanghai composite was up 13 bps and the Shenzhen component was up 77 bps.
In line with market expectations, the country on Monday announced that the one-year Loan Prime Rate (LPR) was kept unchanged at 3.85% while the five-year LPR was also held at 4.65%.
The analysts expect a 10% to 20% correction in markets due to the hawkish stance by the Federal Reserve. This time, however, they expect the losses to continue till the end of the year.