China's leading stock index tumbled nearly 9% Tuesday, marking its biggest plunge in a decade, on concerns of more economic tightening measures as China's parliament prepares for its annual session next week.
The Shanghai Composite Index tumbled 8.8 percent to 2,771.79, its biggest decline in a decade amid profit-taking and speculation of a fresh round of austerity measure from the Chinese government to slow sizzling economic growth.
Chinese share prices doubled last year as investors piled into the market following the completion of shareholding reforms that helped to reduce worries over a potential flood of shares entering the market.
In Tokyo, the Nikkei 225 index shed 95.43 points, or 0.52 percent, to finish at 18,119.92 while Hong Kong's Hang Seng Index dropped 360.08 points, or 1.8 percent, to finish at 20,147.87.
Stock declined as investors took profits in steel and real estate sectors, which have risen in recent sessions, traders said. Decliners included JFE Holdings Inc., which fell 2.30 percent to 7,640 yen ($63.67), and Sumitomo Realty & Development Co., which dropped 5.01 percent to 4,930 yen ($41.08).
Elsewhere:
BANGKOK: Thailand's shares ended lower, driven by losses in most Asian markets. The Stock Exchange of Thailand's SET index lost 0.7 percent to 683.95 points.
JAKARTA: Indonesian shares dropped 1.1 percent at 1,764.01 points, as investors continued to sell their equity portfolios ahead of expected higher inflation data in February which is due to be announced Thursday.
KUALA LUMPUR: Malaysian shares fell on concerns of a slowdown in the U.S. economy and geopolitical events in the Middle East and central Asia. The Kuala Lumpur Composite Index plunged 35.79 points, or 2.8 percent, to 1,237.08 points.
MANILA: Philippine stocks declined for the second straight session as higher commodity prices, particularly crude oil, stoked inflationary concerns. The 30-company Philippine Stock Exchange Index shed 48.71 points, or 1.4 percent, at 3,331.29.
MUMBAI: India shares ended lower on weak cues from other regional markets and as cautious investors stayed on the sidelines a day before the Union Budget. The Bombay Stock Exchange's 30-stock Sensitive Index, or Sensex, fell 1.3 percent, or 170.69 points, to 13,478.83.
SEOUL: South Korean shares closed lower as declines in Chinese and other Asian markets fueled profit-taking following gains to record highs in the past three days. The Korea Composite Stock Price Index, or Kospi, dropped 15.43 points, or 1.1 percent, to 1454.60.
SINGAPORE: Singapore shares ended sharply lower in a broad-based market correction after months of strong gains. The benchmark Straits Times Index fell 75.9 points, or 2.3 percent, to 3,232.02.
TAIPEI: Taiwan shares ended flat as steel gains were offset by profit-taking in the construction sector. The Weighted Price Index of the Taiwan Stock Exchange rose only 1.76 points to end at 7,901.96 points.
WELLINGTON: New Zealand stocks slipped amid disappointing profit results and a high local currency. The benchmark NZX-50 dipped 11.2 points, or 0.3 percent, to 4,099.42.
SYDNEY: Australian shares finished below 6,000 points as investors began to fret about a possible U.S. recession and a drop in the Shanghai market. The benchmark S&P/ASX200 index fell 50.2 points to 5,993.8.
With files from wire services
