South Korea's KOSPI index slid below 8,400, down nearly 6% intraday.

The ruling coalition led by Chancellor Merz is negotiating a personal income-tax cut of up to €20 billion as part of a push to advance broader reforms. Parties remain split on how to finance the measure; CDU leadership and SPD leaders will meet Sunday to try to bridge differences over a proposal targeted at taxpayers with annual income up to €100,000. Coalition partners are preparing a July 1 meeting to finalise plans for pensions, healthcare and tax-system reforms intended to revive German economic growth.

Hong Kong-listed J&T Express (01519.HK) shares rose more than 3% after the company proposed a share buyback of up to HK$2 billion.