South Korea's KOSPI extended losses to 2%, with Samsung Electronics down 0.4% and SK Hynix down 3%.

WTI crude extended intraday gains to 1%, trading at $70.78/bbl. Brent crude up 1.3% at $74.11/bbl.

Former Bank of Japan executive Kenzo Yamamoto said the next BOJ rate increase is likely to occur before December, sooner than the December move most economists expect. He pointed to a BOJ measure of potential inflation excluding fresh food and state aid that has averaged about 3% over the past four years, above the 2% target. By contrast, Japan’s core CPI excluding only fresh food was 1.4% in May, a level Yamamoto attributed largely to Prime Minister Sanae Takaichi’s cost-of-living relief measures; the BOJ says price trends remain slightly below 2%. Yamamoto added he would be concerned if the BOJ treated the potential-inflation measure as unreflective of price trends and said policy should shift toward reining in inflation.