"There's concern that the European debt problem may get serious"
- Toshiyuki Kanayama, a market analyst at Monex Inc.
Japanese stocks tumbled on Monday after presidential elections in France and parliamentary elections in Greece.
The Nikkei 225 sank 2.78%, or 261.11 points, to 9,119.14. The broader Topix retreated 2.62%, or 20.81, to 772.06.
"The situation in Europe is tough," said Khiem Do, Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Asia Ltd. "Very few nations can stand austerity. If the European Monetary Union stays the same, something has to give."
"There's concern that the European debt problem may get serious," said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc.
"The U.S. job recovery is getting sluggish, fueling concern that it may have a bad impact on consumer spending and housing markets."
© Dukascopy Bank