Equities, oil and precious metals were all down early on Monday to extend the volatility that struck global markets at the end of last week into a new week, with concerns about elevated tech valuations once again casting a shadow.
Investors resumed Friday's rollercoaster ride as they assessed geopolitical developments, the latest batch of company earnings and the outlook for U.S. interest rates.
Gold slid 9% to its lowest in more than two weeks, while silver fell more than 13% after both metals hit records last week.
The choice of Kevin Warsh as the next Federal Reserve (Fed) chair set off a wave of selling in risk assets that sent precious metals tumbling for a second session, reversing the whopping gains in recent weeks.
After a strong January fuelled by artificial intelligence bets, stocks headed into the opposite direction last week as traders again questioned the wisdom of the vast sums pumped into the sector and when they will see returns.
That has also raised fears of a tech bubble that could soon pop.
The latest round of selling came after Microsoft announced a surge in spending on AI infrastructure, reviving concerns that it could take some time for companies before seeing a return on their investments.
Seoul, which has hit multiple records this year thanks to its big tech weighting, plunged more than 5%, with chip giant SK hynix shedding 8% and market heavyweight Samsung off more than 6%.
Tokyo, also home to several big-name tech firms, shed more than1%, as did Taipei, where chip giant TSMC is listed.
Hong Kong, Shanghai, Sydney, Singapore, Wellington, Manila and Bangkok also tumbled.
Jakarta tanked more than 5%, extending last week's rout after index compiler MSCI called on regulators to look into ownership concerns and a warning it would hold off adding Indonesian stocks to its indexes or increasing their weighting.
Oil prices also plunged on easing U.S.-Iran tensions.
Both main crude contracts shed more than 5% as U.S. President Donald Trump said he was hopeful of reaching a deal with Tehran after it warned that any attack on Iran would trigger a regional conflict.
Washington has hit out at the country's leadership in recent weeks over its deadly response to anti-government protests, with Trump threatening military action.
He has also pushed for an agreement over Iran's nuclear programme.
Iran's supreme leader Ayatollah Ali Khamenei, on Sunday likened the recent protests to a "coup" and warned a U.S. attack would trigger a regional conflict.
Asked about the Iranian leader's warning, Trump told reporters on Sunday: "Of course he is going to say that."
"Hopefully, we'll make a deal. If we don't make a deal, then we'll find out whether or not he was right," he said.
Oil's drop was helped by a stronger dollar, which came on the back of news that Trump had tapped Warsh to head the U.S. central bank.
The president said the former Morgan Stanley investment banker and Fed governor "will go down as one of the GREAT Fed Chairmen, maybe the best."
Traders regard Warsh as the toughest inflation fighter among the final candidates, raising expectations of the monetary policy that would underpin the greenback.
The choice also eased concerns about the Fed's independence following a series of attacks on incumbent Jerome Powell over his reticence to cut rates as quickly as the president wanted.
The dollar surged, having plunged most of last week on concerns the White House was happy to see it weaken.
"Warsh emerged as one of the more hawkish voices during his time at the Fed, at times opposing rate cuts during the 2008 (global financial crisis), out of concern on inflation risks," wrote Brian Levitt at Invesco.
"At first glance, his monetary policy track record would seem to conflict with Trump's desire for lower rates, although his tone has shifted in recent months."
Warsh was "currently in favor of greater policy easing in 2026, driven by a view that productivity gains could boost US economic growth without driving higher inflation," he added.
"The decision by markets to sell precious metals alongside U.S. equities suggests investors view Warsh as more hawkish," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia (CBA).
"A stronger U.S. dollar is also adding pressure on precious metals and other commodities, including oil and base metals," added Dhar, who is sticking with a gold price forecast of $6,000 in the fourth quarter, however.
The announcement on the new Fed chair nominee sent dollar-priced precious metals plunging on Friday, with gold losing as much as 12% and silver more than 30% at one point.
And the losses mounted on Monday, with gold shedding close to 10% to touch just below $4,403, while silver briefly lost over 12% tumbling to $75. That left them well down compared to their record highs of $5,595 and $121 seen last week.
"The question everyone is now asking is what happens next?" said Pepperstone's Michael Brown.
"Here, I would flag that in a similar manner to the rally seen in recent weeks, there is now a solid argument that the pullback has also run 'too far, too fast.'"
