Shares in Nippon Steel fell more than 1% on Monday after U.S. President Joe Biden blocked its proposed $14.9 billion acquisition of U.S. Steel, dampening growth prospects for Japan's largest steelmaker.

President Joe Biden announced he was blocking the purchase of U.S. Steel by Japanese steelmaker Nippon Steel on dubious economic and national security grounds.

The president said he was moving to protect national security in deciding the fate of the iconic Pennsylvania-based company, which became a contentious political issue in an election year.