Shares in Tokyo fell sharply Monday, on concerns that Japan's next prime minister could adopt policies that wouldn't be very friendly to the economy and markets. The benchmark Nikkei Stock Average fell 4.

Ishiba has expressed support for the Bank of Japan's moves to raise interest rates from their near-zero level. He also backs other policies, such as possibly raising corporate taxes, that are seen as less market friendly than his chief rival for the top job, Economic Security Minister Sanae Takaichi, who he beat in a run-off vote late Friday.

Global markets had a wild start to the week, with Tokyo’s Nikkei 225 index tumbling nearly 5% while Chinese markets soared on news of fresh stimulus for the faltering economy, with Shanghai up more than 8%.