Hong Kong's benchmark index plunged to a more than 13-year low on Monday as China's new leadership spooked stock investors.

The Hang Seng ended the day down 6.36 percent from Friday's close. Investors were worried that Beijing may further clamp down on Chinese high-tech firms.

The benchmark index in Shanghai dropped by 2 percent.

There were concerns that Chinese officials will seek to reduce inequality at the expense of economic growth. Investors also feared that the conflict with the US could worsen.

The impact also reached Tokyo although the Nikkei Average eked out gains of 0.3 percent on easing concerns about a US economic slowdown.

The upside was limited as stocks of department stores and railway companies were hit by expectations of weak inbound demand as China sticks to its zero-COVID policy.