Asia-Pacific markets saw a wide sell off, with South Korea, Hong Kong, and mainland Chinese markets seeing losses of about 2% each.
This also mirrors moves on Wall Street overnight as U.S. Treasury yields jumped to multiyear highs, with the 10-year Treasury yield breaking above 4.9% for the first time since 2007.Â
Meanwhile, the average rate on the 30-year fixed mortgage rate hit 8%, the highest level since 2000.
Japan recorded a higher than expected trade surplus of 62.4 billion yen ($416.6 million) for September, while data from Australia showed its unemployment rate fell to 3.6% last month.
In Australia, the S&P/ASX 200 fell 1.36%, erasing all the gains it's made this week and closing at 6,981.6.
Hong Kong's Hang Seng index lost 2.43% in its final hour, leading losses in Asia, while China's CSI 300 index shed 2.13% and closed at 3,533.54, hovering near a 12-month low.
Japan's Nikkei 225 also tumbled 1.91% to end at 31,430.62 for its largest single-day loss in two weeks, while the Topix saw a smaller loss of 1.36% and closed at 2,264.16 after the trade data was released.
South Korea's Kospi was down 1.9% to finish at 2,415.8, but the Kosdaq plunged 3.07% and closed at 784.04, its lowest level in about seven months as the Bank of Korea kept its interest rates steady at 3.5% for the sixth time in a row.
On Wednesday in the U.S., all three major indexes tumbled, with none of them in positive territory at any point during the session.
The Dow Jones Industrial Average slipped 0.98%, or over 300 points. The S&P 500 slid 1.34%, while the Nasdaq Composite dropped 1.62%.
— CNBC's Samantha Subin and Alex Harring contributed to this report.