Tokyo stocks tumbled on the first trading day of 2016 on Monday, with the Nikkei index ending down more than 3 percent, as a further decline in Chinese manufacturing conditions in December stoked ongoing concern about a slowdown in the world's second-largest economy.
The 225-issue Nikkei Stock Average ended down 582.73 points, or 3.06 percent, from last Wednesday at 18,450.98, a roughly 10-week closing low. Tokyo markets were closed Thursday and Friday for the New Year holidays.
Crude oil surged after Saudi Arabia expelled Iran's diplomats from its borders following an attack on its embassy in Tehran to protest the Saudis' execution of a Shiite cleric.