Shares of Japanese automaker Nissan fell 5.45 percent on Tuesday after its chairman, Carlos Ghosn, wasarrested a day earlier over allegations of financial misconduct.
The auto giant said in a statement on Monday that "over many years" Ghosn and board director Greg Kelly had been under-reporting compensation amounts to the Tokyo Stock Exchange securities report.
Nissan added that, with regard to Ghosn, "numerous other significant acts of misconduct have been uncovered, such as personal use of company assets." The company said Ghosn had also made inappropriate investments.
In a press conference Monday, Nissan Chief Executive Hiroto Saikawa, said both men had been arrested and this Thursday he would propose to the Nissan Board of Directors to remove them from their roles.
Ghosn is also chairman and CEO of the strategic alliance between French automaker Renault, Nissan and Mitsubishi Motors. Mitsubishi Motors shares were down 6.85 percent.
The broader Japanese market also declined, with the benchmark Nikkei 225 down 1.09 percent to close at 21,583.12 and the Topix index lower by 0.73 percent to 1,625.67. In South Korea, the Kospi slipped 0.86 percent to close at 2,082.58.
The mainland Chinese markets were also lower on the day. The Shanghai composite fell 2.13 percent to close at around 2,645.85 while the Shenzhen composite shed 2.717 percent to 1,378.92. Hong Kong's Hang Seng index declined 1.94 percent in late-afternoon trade.
Australia's ASX 200 was down 0.38 percent to close at 5,671.8, with almost all sectors in negative territory.