Japan's Nikkei tumbled almost 3 percent on Wednesday as investors fled tech stocks, spooked by Web portal operator Livedoor's woes and disappointment over Intel, halting trade on the world's second-largest bourse.
The Tokyo Stock Exchange halted trade at 0540 GMT, 20 minutes earlier than normal, as heavy orders threatened to reach its system's capacity.
Oil prices rose to their highest in nearly 4 months while the dollar edged up against the yen. Gold fell more than 1 percent as investors cashed in on the metal's rise to a 25-year peak of $564 an ounce the day before.
Results from Intel Corp. and Yahoo Corp. which missed expectations, cast a pall over Asia's share markets, especially technology stocks which had powered recent gains. "Intel results were not as good as expected, and that's having an impact on Samsung and Hynix," said Lee Woo-hyun, an analyst at South Korea's Kyobo Securities. "There's also the risk of higher oil prices acting as a burden on fundamentals, while corrections in U.S. and Japanese markets are also hitting the market."
The Nikkei share average extended losses into a third day, ending 2.94 percent lower at 15,341.18, having at one stage lost more than 4 percent, trading below 15,500 for the first time since Dec. 20. The broader TOPIX index was down 3.49 percent. Troubles at Livedoor Co., which is being investigated on suspicion of securities law violations, drove many retail investors to sell other Internet firms such as Softbank Corp.
A jump in oil prices to near $67 also spooked market sentiment, with MSCI's broadest index of Asian shares outside Japan down 1.9 percent.
NYMEX February crude oil was up 34 cents at $66.65 per barrel on concerns about supplies following threats of more attacks on Nigeria's oil facilities and as Iran's nuclear stand-off with the West simmered.
Spot gold fell to $544.00/545.00 from New York's close of $553.50/554.30. Dealers said more correction was possible, but gold would find support from heightened geopolitical risk, high oil prices and investor diversification.