Dealers said rate-sensitive property counters led the falls, although the selling was spread fairly across the board.
The Hang Seng index closed down 291.01 points at 20,509.15.
SEOUL
Share prices slumped 1.47 percent as foreign investors cashed out after the market's record-breaking run following further heavy losses on Wall Street overnight.
The Bank of Korea's decision to keep its call rate target for June on hold at 4.5 percent failed to provide a boost, with the governor's comments on ample liquidity sparking fears of a possible interest rate hike in coming months.
The KOSPI index lost 25.76 points at 1,727.28.
SHANGHAI
Share prices closed 0.57 percent higher, supported by fresh fund inflows as investors anticipated strong first-half corporate results and looked past recent turbulence.
Dealers said the market opened lower, turned positive and fell again before steadying, continuing the recent volatility after the government's decision last week to triple the stamp duty tax sparked heavy losses.
The Shanghai Composite Index closed up 22.33 points at 3,913.14.
SYDNEY
Share prices closed 1.26 percent lower, hit by sharp losses overnight on Wall Street as investors fretted about the possibility of higher interest rates.
Dealers said local investors were already concerned by the prospect of tighter monetary policy following stronger-than-expected first quarter growth and employment figures earlier this week.
The S&P/ASX 200 fell 79.4 points to 6,231.7.
SINGAPORE
Share prices closed 1.54 percent lower after fears of possible hikes in global interest rates sparked a sell-off in the US, Europe and Asia.
The Straits Times Index closed down 54.74 points at 3,491.59.
KUALA LUMPUR
Share prices closed 0.88 percent lower in line with the weaker regional markets after Wall Street fell sharply overnight.
Dealers said sentiment was also undermined by the ringgit which weakened on foreign investors unwinding their positions.
The composite index was down 12.02 points at 1,352.39.
BANGKOK
Share prices closed 0.9 percent lower in line with a drop on Wall Street as investors remained jittery over higher US interest rates.
The composite index fell 6.83 points to 752.00.
JAKARTA
Share prices closed 1.88 percent lower after a slide on Wall Street overnight sent many Asian markets into negative territory.
The composite index closed down 39.361 points at 2,054.450.
MANILA
Share prices closed flat as bargain-hunters emerged in late trade and picked up stocks battered by Wall Street's overnight slump.
Dealers said this enabled the local market to cut early losses which were in line with a sell-off across the region on fears of rising interest rates.
The composite index ended down 2.06 points at 3,526.73.
WELLINGTON
Share prices closed 1.22 percent lower after fears about inflation and interest rates rattled local and overseas markets.
The NZX-50 gross index fell 51.17 points to 4,183.45.
MUMBAI
Share prices fell 0.86 percent in volatile trade as investors chose to unwind positions ahead of the weekend.
Dealers said software stocks gained on a weak rupee against the dollar, while automobile and steel stocks fell on fears of rising costs.
The 30-share SENSEX fell 122.37 points to 14,063.81.
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