Passersby are reflected on a screen displaying graphs of market indices outside a brokerage in Tokyo, Japan, August 6, 2019.
The Shanghai Composite Index lost 0.5 percent to 2,801.33, and Tokyo's Nikkei 225 tumbled 1.2 percent to 20,433.65. Hong Kong's Hang Seng fell 1.2 percent to 25,524.86. Investors were rattled by a Chinese government statement Monday saying mostly nonviolent protests in Hong Kong were "beginning to show the sprouts of terrorism" and were an "existential threat" to the population.
Beijing's use of the term terrorism "triggered a wave of risk aversion across global markets," said Stephen Innes of VM Markets in a report.
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