Chinese shares also fell at open. But defence and military-related stocks surged as investors bet geopolitical tensions, particularly over Taiwan, will intensify.
Hong Kong's stock benchmark Hang Seng opened down 2%. The Hang Seng Tech Index slumped 3.2% to a record low, while Hong Kong-listed Chinese developers also tumbled.
China's bluechip CSI300 index dipped 0.4% at the open while the Shanghai Composite Index lost 0.1%.
Offshore yuan fell to as low as 7.2790 per dollar in early morning trade, near record-low levels.
Onshore yuan also weakened, after the People's Bank of China set the mid-point rate at its weakest level since June 1, 2020.
(Reporting by Shanghai and Hong Kong newsroom; Editing by Edwina Gibbs)