SYDNEY, NSW, Australia - Stocks were thrashed in Japan, Australia, and Hong Kong on Monday. Shares in China finished flat.
The major falls in Asia followed major sell-offs in the United States and Europe on Friday.
"It is the correction we had to have, Shaw & Partners senior investment advisor Adam Dawes told The Sydney Morning Herald on Monday.
"It is a solid pull back, but we have had six months of good returns.
"It is good to have a re-set, isn't it? You climb the stairs and go down by the elevator. There is a little bit of heat coming out, as expected," Dawes added.
The Nikkei 225 in Tokyo was the biggest casualty, diving 953.15 points or 3.29 percent to 28,010./93. The index at one stage was down four percent.
The Australian All Ordinaries tumbled 139.10 points or 1.82 percent to 7,485.20.
The Hang Seng in Hong Kong lost 312.27 points or 1.08 percent to 28,489.00.
China's Shanghai Composite added 4.09 points or 0.12 percent to 3,529.18.
The U.S. dollar continued to trade at around two-month highs despite a slight softening of long-term U.S. bond yields on Monday.
Around the close in Sydney Monday the euro was changing hands at 1.1854. The British pound was weaker at 1.3804. The Swiss franc eased to 0.9234.
The Canadian dollar slid to 1.2482. The Australian dollar was friendless at 0.7482. The New Zealand dollar was bid at 0.6948.
Only the Japanese yen showed any resistance, rising a fraction to 109.97.