Japan's Nikkei 225 index fell more than 2% on Monday, erasing the previous session's one-week high as the yen strengthened sharply against the US dollar.
The market sell-off was triggered by confirmation from both Tokyo and Washington that they had executed a rare joint foreign exchange intervention to curb the yen's depreciation.
The rapid appreciation of the yen weighed heavily on Japanese exporters, which form a significant portion of the Nikkei 225.
Investors quickly repriced the risk of further policy coordination, leading to broad-based selling across the index.
The move underscores the growing pressure on Japanese authorities to stabilize the currency, which had been trading near multi-year lows against the greenback.
This intervention follows a period of intense volatility in Asian markets.