Stocks dropped after Japan’s governing party chose Shigeru Ishiba, a critic of the country’s longstanding ultralow interest rates, as its leader.

Ishiba has expressed support for the Bank of Japan's moves to raise interest rates from their near-zero level. He also backs other policies, such as possibly raising corporate taxes, that are seen as less market friendly than his chief rival for the top job, Economic Security Minister Sanae Takaichi, who he beat in a run-off vote late Friday.

The unexpected victory of Shigeru Ishiba as Japan's next prime minister, coupled with a series of mixed economic data, sent shockwaves through Japan's stock market, marking another "Black Monday" for the country.