Hong Kong shares ended 1.31 percent lower on Monday after strong US jobs growth fuelled fears the Federal Reserve will soon start to wind down its huge stimulus programme.
The benchmark Hang Seng Index fell 272.48 points to 20,582.19 on turnover of HK$52.44 billion ($6.77 billion).
"The US may have viewed the strong payrolls report as positive, but it appears Asian-emerging markets have not seen it that way," IG chief market strategist Chris Weston said in a note to clients.
"Once again the US bond market is slap bang in the centre of the moves in the capital markets."
Property shares were hit the hardest in Hong Kong, with Sino Land tumbling 3.2 percent to HK$10.22 and Henderson Land falling 2.0 percent to HK$46.45.
Banking issues also suffered, with China Construction Bank falling 2.05 percent to HK$5.25 and Industrial and Commercial Bank of China 1.66 percent off at HK$4.74. Bank of China was down 2.23 percent at HK$3.07.
Chinese shares ended down 2.44 percent on worries over a possible resumption of new share offers after a nearly nine-month suspension, dealers said.
The benchmark Shanghai Composite Index lost 2.44 percent, or 48.93 points, to 1,958.27 on turnover of 67.2 billion yuan ($10.9 billion).
State media reported on Monday that China's stock regulator could resume approvals for initial public offerings (IPOs) at the end of July, sparking fears of a share glut.
The move would also come at a time when investors are already nervous about the state of the Chinese economy, which has been showing signs this year of slowing down.
"While it remains unclear when China will end its moratorium on the IPO market, people are fretting that the resumption will divert cash from the existing stocks," Shenyin Wanguo Securities analyst Wei Daoke said.
Resources firms led the declines. Baotou Steel Rare-Earth slumped 5.74 percent to 21.01 yuan while Jiangxi Copper dropped 5.57 percent to 15.44 yuan and China Coal Energy lost 5.23 percent to 4.71 yuan.
Banking stocks also lost ground, with Pudong Development Bank dropping 2.47 percent to 7.91 yuan and China Merchants Bank losing 2.13 percent to 11.03 yuan.
-- Dow Jones Newswires contributed to this report --