Energy plays across the board lagged, with shares of Santos closing down 8.1 percent, Oil Search down 4.15 percent and Woodside Petroleum seeing losses of 1.99 percent in Australia. In Japan, Inpex and Japan Petroleum closed lower, down 5.82 and 7.44 percent respectively.
Resources stocks in Australia finished the session lower, with BHP Billiton and Rio Tinto, the country's two largest miners, down 3.47 and 3.33 percent respectively.
Iron ore miner Gindalbie Metals trimmed some losses, but still ended down 57.14 percent after reports emerged that Ansteel was reviewing their funding options for the miner. Gindalbie could face financing difficulties should Ansteel withdraw its funding.
Elsewhere, coal producer Whitehaven Coal erased morning gains to end 5.65 percent lower. Earlier, its shares surged 4.84 percent after it reported a jump in coal output and sales and confirmed its profitability in the first half of fiscal 2016.
In Japan, the dollar-yen pair traded lower at 117.50 with the yen, a safe haven currency, seeing some gains in the middle of the ongoing market turmoil. Major export-oriented stocks, which depend on the dollar-yen pair, such as Toyota, Nissan, Sony and Mitsubishi Electric, all traded down.
Sharp shares erased morning gains to finish down 1.75 percent. Earlier, shares ticked up after local reports said Japanese state-backed fund INCJ offered to invest 200 billion yen ($1.7 billion) to help bail out the electronics maker. Reuters, citing a source, said the company also planned to ask banks to convert 150 billion yen in loans into equity.
Shares of Honda trimmed gains to close flat as the Japanese carmaker introduced a newer, updated model of its Ridgeline pickup trucks at the North American International Auto Show in Detroit.