Asian equity markets reacted nervously to the election victory of Greek leftist party Syriza on Monday, as investors became wary of potential conflict that could put more strain on the euro zone.
"Various polls have been predicting a Syriza victory for some time but the margin of victory was above expectations and the subsequent coalition with the Independent Greeks may complicate matters," wrote Chris Weston, IG's chief market strategist, in a note. "As such, confusion and uncertainty seems to have crept through traders' minds in Asia today."
The euro and crude oil prices were also the victims of Greece's election results. The common currency hit a 11-year low against the U.S. dollar in early trade, before rebounding to trade at $1.1192. West Texas Intermediate crude for March delivery fell 46 cents at $45.13 a barrel, while March Brent crude dropped 37 cents to $48.42 a barrel by 0226 GMT.
Adding to the gloom was a negative finish on Wall Street last Friday, as investors considered economic data, energy costs and reduced 2014 earnings estimate from United Parcel Service. The S&P 500 halted a four-session winning run, ending down 0.6 percent. The Dow Jones Industrial Average declined 0.8 percent, while the tech-heavy Nasdaq gained 0.2 percent.
Australian markets are closed for the "Australia Day" holiday on Monday.