Asia-Pacific markets sold off as the world awaits Israel's response to Iran's air assault over the weekend. Most major markets in Asia lost about 2%.
On Tuesday, China's economy grew 5.3% in the first quarter compared with a year ago, faster than the 4.6% growth expected by economists polled by Reuters.
South Korea's Kospi led losses in the region, plunging 2.28% to 2,609.63, with the small-cap Kosdaq also down 2.3% and closing at 832.81.
Japan's Nikkei 225 tumbled 1.94% to its lowest level in almost two months, while the broad based Topix fell 2.04% to end at 2,697.11, its lowest level in month. Overnight the yen crossed 154 against the U.S. dollar, its weakest level since June 1990.
In Australia, the S&P/ASX 200 declined 1.81% to 7,612.5, marking its fourth straight day of losses and also hitting a two-month low.
Hong Kong's Hang Seng index slid 2.12%, while the CSI 300 was 1.07% lower and closed at 3,511.11 after the GDP announcement.
Overnight in the U.S., stocks retreated on Monday as rising yields and worries over the conflict in the Middle East overshadowed strong Goldman Sachs earnings and hot retail sales data.
The Dow Jones Industrial Average lost 0.65%, to mark its sixth straight losing day, a streak not seen since June.
The S&P 500 slipped 1.2% despite trading up as much as 0.88% earlier in the session. The Nasdaq Composite tumbled 1.79% as Salesforce and other technology stocks dropped.
Higher rates also poured cold water on the market bounce, with the yield on the 10-year Treasury rising above the key 4.6% level in the session and reaching its highest point since mid-November.
— CNBC's Hakyung Kim and Alex Harring contributed to this report.