Japan's benchmark Nikkei 225 accelerated its losses to plunge over 6 percent on Thursday in a vicious sell-off.
The rout in global financial markets that has spared few asset classes extended into Thursday, with Asian stocks plunging across the board.
Stocks finished near session lows in choppy trading Wednesday, with the Dow posting its first three-day losing streak this year, amid lingering worries of Fed tapering.
The dollar recovered lost ground against the yen on Wednesday after a sharp sell-off the previous day as investors sought to buy at cheaper levels.
Gold prices ended higher, as losses in US equities and a drop in the U.S. dollar prompted the metal to rebound from the previous session's three-week low.
US light, sweet crude prices end higher at $96 a barrel due to worry over supply disruptions but capped by a jump in inventories in US and estimate cut for oil demand.
European shares closed lower on Wednesday, mirroring losses in U.S. markets.
Cyclicals are heating up as the summer approaches and the economy starts to show signs of improvement, analysts say.
Japan's benchmark index trimmed losses on Wednesday, extending a global sell-off in equities amid disappointment at the Bank of Japan's (BOJ) inaction to calm volatile markets.
The yen soared on Tuesday after the Bank of Japan decided not to announce additional measures to curb recent volatility in the bond market.
Gold hit a near three-week low, ending lower as a lack of new economic stimulus from the Bank of Japan fueled worries that other central banks may also withdraw their support, denting bullion's inflation-hedge appeal.
Crude fell below $103 per barrel on Tuesday after the world's largest consumer, the United States, nearly doubled the estimate of its shale oil reserves.
Japan's benchmark Nikkei shed as much as 1.5 percent on Tuesday after the Bank of Japan (BOJ) disappointed investors in its monetary policy statement.
The dollar rose sharply versus the yen on Monday, bolstered by stronger-than-forecast Japanese data and a Standard & Poor's upgrade to the credit outlook for the United States.
US Treasury debt prices fell with the 30-year bond yield hitting a 14-month high after Standard & Poor's raised its credit outlook on the United States.
Gold ended the day almost unchanged, taking a breather after dropping the most in a month in the previous session.
Brent crude oil dipped toward $104 per barrel as weak data from top energy consumer China muddied the oil demand outlook, overshadowing optimism stemming from a pickup in U.S. hiring.
Asian stocks rose on Monday with Japan's benchmark Nikkei rebounding on the back of a strong gross domestic product (GDP) revision and a weaker yen.
The dollar recovered on Friday from steep losses in the previous session after a government report showed a reasonably healthy pace of U.S. job creation in May.
Gold fell around 2 percent, its biggest one-day drop in over three weeks, as funds dumped bullion after resilient U.S. jobs data suggested the Federal Reserve could begin to scale back its monetary stimulus later this year.