Japan's Nikkei index fell 4.2%, extending its losses this year to just over 14%. The slide has put the index well into correction territory, and erased a chunk of last year's stunning 57% gain. Hong Kong's Hang Seng also pushed into a correction, dropping nearly 3%.
"The nature of the sell-off has been sharp and appears to be overdone in the near-term, suggesting that the market could be due a technical bounce, especially if there is a whiff of upbeat macro news flow," said Gerard Lane, an investment strategist at Shore Capital.
Looking ahead, the U.S. Census Bureau is scheduled to release its monthly report on factory orders at 10 a.m. ET. This could give cause for renewed anxiety after a weak U.S. manufacturing report fueled Monday's market plunge.