Japan’s benchmark Nikkei 225 Stock Average plunged 3 per cent on Tuesday following heavy losses in US technology shares.
Sentiment was also hurt by fears of another wave of the Covid-19 pandemic.
The Nikkei lost 909.75 points, or 3.08 per cent, to close at 28,608.59, while the broader Topix index was down 46.35 points, or 2.5 per cent, to 1,905.92 on the day.
Some western Japanese prefectures decided not to hold the Olympic torch relay on public roads due to surging coronavirus infections.
In the US on Monday, the technology-heavy Nasdaq Composite Index plummeted 2.55 per cent and the S&P 500 index shed 1.04 per cent while the Dow Jones Industrial Average was down 0.1 per cent.