US 6-month Treasury auction on July 13: share of allotment at the stop-out yield 54.42%, previous 0.86%.

South Korea's KOSPI extended losses to 2%; SK Hynix fell 3%.

Refinitiv, citing sources, said Japan has no plan for a broad overhaul of the Government Pension Investment Fund's (GPIF) asset allocation. The yen weakened about 0.4% to 162.36 per dollar and JGB futures extended losses after the report. Sources added Japan could still use existing allowances to shift some pension funds into domestic assets. Last week Japan's finance minister Katayama urged large pension funds, including GPIF, to boost domestic allocations, a call that had earlier supported the yen and JGBs. Some investors questioned whether the yen rally can be sustained given geopolitical risks, fiscal concerns and persistent interest-rate differentials.