Stocks dropped after Japan’s governing party chose Shigeru Ishiba, a critic of the country’s longstanding ultralow interest rates, as its leader.

Asian 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. Japanese shares sank after the ruling Liberal Democrats chose former Defense Minister Shigeru Ishiba to succeed Prime Minister Fumio Kishida,

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.