Japan's Nikkei slumped to a 20-month low on Tuesday as Wall Street tightened investor risk aversion as the downtrend began.
The average Nikkei share fell by just under 5 percent to 19,147.45, just after 11 o'clock. HK / SIN, The lower topix also fell by about 5 percent.
In China, however, the Shanghai index lost more than 2 percent until the middle of the day, approaching a four-year low hit in mid-October. Chinese sectors lost ground across the board, led by financial stocks and energy companies as oil prices plummeted.
So far, the Shanghai stock index has fallen 23.59 percent this year, while the stock index fell 2.36 percent this month. [1
Many of the financial markets in Asia, Europe and North America are closed on Tuesday Christmas Day.
"The negative sentiment has replaced logic, as is often the case with a sell-off: one-third of the sale is causing panic, another third by loss-reduction, and the remaining third by speculators trying to make a profit from the market return "said Takashi Hiroki, chief strategist at Monex Securities in Tokyo.
"Almos is selling alot. This is entirely due to developments in the US markets, and not to negative factors that are unique to the domestic market."
Finance Minister Steven Mnuchin called on Sunday in the face of the withdrawal the stock of top-notch US bankers and said he called for a meeting of financial supervisors to discuss how "normal market operations" can be ensured.
Wall Street has also dealt with the closure of the US Federal Government, reporting that President Donald Trump has privately discussed the possibility of dismissing the Federal Reserve Chairman.
Japanese blue-chip stocks fell over the dollar Toyota fell 5.1 percent, Sony lost 4.5 percent, Nintendo 4.3 percent and Mitsubishi UFJ Financial Group 4 percent.
Defensive stocks such as consumer staples, health care and utilities could not withstand the selling pressure.  Convenience store operator Familymart UNY Holdings lost 5.3 percent, health care product maker Kao lost 5.7 percent and Tokyo Electric P ower lost 3 percent.
All 33 subsectors of the Tokyo Stock Exchange were in the red, led by precision machinery and pharmaceuticals.
– Everett Rosenfeld of CNBC contributed to this report.