The Nikkei fell 3.5% to 54,340.02 by 0215 GMT, marking its lowest point since Feb. 6, and is on track for a third straight session of losses if current momentum continues.
Broader Topics fell 3.68% to 3,633.03.
“Investors sold riskier assets, and in particular, the Nikkei as well as the KOSPI, which underperforms other major indexes, have become targets of heavy selling as they try to book profits,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
Shares in Seoul’s benchmark index fell 7% on Wednesday.
Israeli and US forces attacked targets across Iran on Tuesday, prompting Iranian retaliatory strikes around the Gulf as the conflict spread to Lebanon, roiling global markets and sending oil prices soaring.
In Japan, chip-related heavyweights led the Nikkei decline, with Advantest and Tokyo Electron down about 5%. Technology investor SoftBank Group fell 6.89%.
All 33 industry indices slipped, with the oil refinery index falling 7.65% to rank as the worst performer.
Investors beat-down software-related shares. Baycurrent gained 5.7% and Shift gained 1.84%.
IwaiCosmo’s Shimada said the move is a precise mirror of the US market where peers such as Salesforce jumped overnight.
Nidec shares jumped 5.5% after the electric motor maker warned it could face up to 250 billion yen ($1.6 billion) in an accounting scandal that led to the exit of its founder and other top executives.
Sony Group rose about 1% and Nintendo gained 1.37%.
Of the more than 1,600 stocks traded on the Tokyo Stock Exchange’s prime market, 92% declined, 6% advanced and 1% traded flat.
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