In China, equities saw a significant sell off as a result of investigations by the Chinese securities regulatory body into several brokerages for breaking regulations. The Shanghai Composite closed 199 points, or 5.48 percent, lower; the Shenzhen Composite closed 6.1 percent lower, the Chinext was down 6.1 percent, and the CSI300 Index saw a decline of 5.38 percent.
Chinese brokerages took major hits, with Citic Securities, Founder Securities, and China Merchants closing 10.1, 10, and 9.98 percent lower after news broke that the China Securities Regulatory Commission (CSRC) has launched investigations into these firms to weed out short selling and speculation.
Earlier in the day, Citic announced it received a formal notice from the China Securities Regulatory Commission (CSRC) that it was under investigation, along with Guosen Securities, for violating securities laws. Shares of Guosen also plunged, closing 10 percent lower in afternoon trading.
Reuters then reported that Haitong Securities, whose shares were halted from trading, was also being investigated by CSRC for alleged violation of securities regulations. Earlier in the year, the firm was fined 86 million yuan ($13.5 million) for breaching securities rules.
Other shares also closed lower on the back data that showed a 4.6 percent year-on-year slump in China's industrial profits for October, sparking fresh concerns about an economic hard landing.
"This is a long-term trend. Even though the PBOC keeps on cutting the interest rate, the RRR, it doesn't help a lot," Dickie Wong, executive director at Kingston Securities, told CNBC's "Asia Squawk Box". "The consumer habits are changing."
ING's Tim Condon said in a note, "Averting the hard landing depends on supporting manufacturing growth and banking system liquidity."
Citing Fitch Ratings, Condon added that a real estate correction could be the proximate threat to manufacturing growth, even as China continues to implement policies to revive its economy. But "the policy easing already implemented and the scope for additional easing make a soft landing the baseline scenario," Condon wrote.
Metal shares reacted negatively on the back of falling industrial profits for October. Shares of Baoshan Steel, Aluminium Corp, and Yunnan Copper slumped between 5 percent and 9.7 percent.
Airline shares also saw firm losses amid heightened global security, as well as recent news from the International Air Transport Association (IATA) suggesting that slowing growth in China, the fastest growing market for air travel, would result in a fall in global demand for air transport.