Asian stocks fell between 1% and 2% as the fallout from Wall Street’s drop and European jitters took hold.
Tokyo shares tumbled 1.7% at the opening bell, following the huge sell-off on Wall Street.
The Nikkei fell 1.5% coming under pressure amid renewed investor fears about a possible US recession.
Japan also intervened in currency markets to weaken the yen in a bid to safeguard the nation’s fragile economy which is still trying to recover from the March 11 earthquake and tsunami.
Seoul shares fell 2% also hammered by fears that the euro zone debt crisis could spill over its banking sector.
South Korea’s central bank is set to hold a rate meeting today in which it is likely to leave its key interest rate on hold.