An “inauspicious” start to the new week morphed into a full-on rout in Asia Monday as purported “liquidity pressure” tied to forthcoming IPOs helped push Chinese stocks to their worst loss in months and tensions with Tokyo tanked South Korean equities.

The Shanghai Composite dove the most in the region, falling 2.6%, in the worst session since May 6, the day after Donald Trump restarted the trade war. The CSI 300 fell 2.3%, while small caps and tech shares ended the session down 2.7% after shedding as much as 3.4%.

While some of the selling was attributed to the prospect of a less accommodative Fed following Friday’s blockbuster June payrolls print, the imminent launch of China’s new tech board (later this month) sparked concern about liquidity being pulled away from other mainland shares….CLICK for complete article