(Bloomberg) — Asian equities slumped at the start of the new week, weighed down by losses in technology stocks on concerns over US economic growth.

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The MSCI Asia Pacific Index fell as much as 1.8%, to the lowest level in three weeks, with chipmakers Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. among the biggest drags. Japan’s Nikkei 225 Stock Average slid more than 3% before trimming its loss as the yen pared last week’s sharp gain. Key stock gauges in Taiwan, Hong Kong and South Korea all fell at least 1%.

Weak US non-farm payrolls data on Friday stirred worry that the Federal Reserve is moving too slowly to support the world’s largest economy. While investors try to gauge the size of the Fed’s rate cut next week, the Bank of Japan’s recent move to tighten policy has put upward pressure on the nation’s currency, fanning concerns over carry trades.

There is scope for “some more short-term downside for risk assets as positions are likely to unwind,” said Matthew Haupt, a portfolio manager at Wilson Asset Management International. “Expect most weakness in Japan at this stage with all markets to suffer as well,” he said.

Chinese shares declined, with Hong Kong benchmarks poised for a fifth-straight day of losses, as weak producer and consumer price data Monday pointed to continued deflationary pressures. The country’s stocks have seen a string of downgrades recently as weak economic data raise doubts over its 5% GDP growth target for 2024.

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