Japan's Nikkei 225 index tumbled as much as 4.1%, with technology stocks leading the decline.

Kioxia Holdings Corp was a major driver of the sell-off, with its shares plunging up to 16%. The memory chipmaker's market capitalization has now halved from its peak in June.

Chip-related stocks including Screen Holdings Co., Ltd., Lasertec Corporation, and Sumco Corporation all fell more than 12%.

The broader Topix index declined by 2.3%.