Nikkei loses 1.8%
Japan's benchmark Nikkei 225 widened losses in the afternoon session to eventually end down with its biggest loss in almost a month. The Tokyo index finished at a near three-week low.
Blue-chip exporters such as Toshiba, Toyota Motor and Sony sold down between 17 and 2.4 percent, as dollar-yen retreated to trade around 124.4.
Insurers were also among the hardest-hit; Dai-ichi Life Insurance and T&D Holdings tumbled more than 4 percent each, while Tokio Marine Holdings receded 2.4 percent.
Read MoreJapan's bittersweet inflation
ASX drops 0.5%
Australia's S&P ASX 200 index settled at its lowest four months as downbeat inflation data from China —Australia's key trading partner— sparked a pullback in key sectors. The Sydney bourse was trading for its first session of the week, following an extended weekend.
The soft data also sparked a sudden move below the $0.7700 mark in the Australian dollar, from around $0.7712 prior to the data.
Meanwhile on the domestic data front, business confidence rebounded to a nine-month high last month as sales and profits improved, a survey by the National Australia Bank showed.
Among the major lenders, Westpac was the sole bright spark which held on to gains of 0.5 percent. Commonwealth Bank of Australia, Australia and New Zealand Banking and National Australia Bank closed down between 0.1 and 0.8 percent.
Underperforming the bourse, Nine Entertainment and Seven West Media plummeted 16.1 and 11.4 percent, respectively, after issuing a profit warning.
South Korea's Kospi index finished nearly unchanged after bobbing between gains and losses earlier in the session.
Mixed trading among heavyweight components likely kept the bourse rangebound. Hyundai Motor closed up 0.7 percent, having leaped up more than 1 percent on news that it is contemplating developing a larger premium sport utility vehicle (SUV).
Meanwhile, the index's top weighted stock Samsung Electronics erased 2.4 percent.