ASX sinks 1.3%
Australia's S&P ASX 200 index declined on the back of a broad-based selloff.
Miners led the losses in the resources space; market bellwether BHP Billiton dropped 0.7 percent, while Rio Tinto and Fortescue Metals plummeted 1.9 and 4.1 percent, respectively.
Financials also saw dismal trade on Thursday, with QBE Insurace down nearly 3 percent.
Shares of Woolworths shaved off 1 percent, still hurt by Wednesday's announcement that its chief executive Grant O'Brien would retire after nearly four years at the helm of the Australian supermarket firm.
Meanwhile, New Zealand's economy expanded 0.2 percent on-quarter in the January-March period, according to official statistics released early Thursday. The reading marked the country's slowest pace of growth in two years due to a drought which curbed dairy production.
The New Zealand dollar shed nearly half a U.S. cent following the data, while the key stock index shed 0.5 percent.
National carrier Air New Zealand was the biggest loser, tumbling nearly 10 percent, on the back of news that rival Jetstar was planning to expand services to several regional cities.
Nikkei loses 1.1%
Japan's benchmark Nikkei 225 index touched its lowest level since May 19, on the back of losses among banks, insurers and carmakers.
T&D Holdings and Dai-ichi Life Insurance receded 2.6 and 1.9 percent, respectively, while Mizuho Financial Group led declines in the banking sector with a plunge of 2.3 percent.
Automakers traded on the back foot following news that Japanese brands fell to below average in the J.D. Power 2015 Initial Quality Study for the first time in 29 years. Nissan and Suzuki Motor plunged more than 2 percent each, while Toyota Motor and Honda Motor retreated 1.5 percent each.
Meanwhile, the Bank of Japan (BOJ) kicks off its two-day policy meeting and analysts are expecting no change in the central bank's monetary policy.