The Nikkei 225 Index tumbled 2.5% to below 36,200, while the broader Topix Index dropped 2.9% to 2,620 on Tuesday, reaching their lowest levels in at least five months.

The decline followed a sharp selloff on Wall Street overnight, fueled by growing US recession fears.

Over the weekend, US President Donald Trump described the economy as being in "a period of transition" when asked about a possible recession, with his tariff policies and government shake-ups adding to market concerns.

In Japan, sentiment was further dampened by weaker economic data. Fourth-quarter GDP growth was revised lower, with annualized expansion slowing to 2.2% from a previous estimate of 2.8%, as private consumption stalled.

Sharp losses were recorded among major index components, including IHI Corp (-7.7%), Kawasaki Heavy (-6.4%), Hitachi (-4.7%), Mizuho Financial (-6.2%), and SoftBank Group (-4.1%).

Source: Trading Economics