South Korea's Kospi saw its worst day in 19 months, weighed down by heavyweights Samsung Electronics and SK Hynix that fell almost 10% and 12%, respectively, on Tuesday as trading resumed after a public holiday.

The index tumbled 7.24% to 5,791.91. Samsung shares plunged after a report revealed that mass production at the company's U.S. plant in Taylor, Texas had been pushed back to 2027 from this year.

The country's defense stocks, however, surged, with some names rising over 20%.

Other Asia-Pacific markets tumbled as the conflict in Iran continues to rage on for a fourth day, denting risk sentiment.

Oil prices extended gains after Iran reportedly said it had closed the Strait of Hormuz, with U.S. crude futures up 2.16% to $72.78 per barrel, while Brent was up 2.78% to trade at $79.91 per barrel as of 2.38 a.m. ET.

More than 14 million barrels per day transited via the Strait on average last year, accounting for nearly a third of the world's overall seaborne crude exports, according to Kpler data.

Japan's Nikkei 225 dropped 3.06%, weighed down by consumer cyclicals, to 56,279.1 while the Topix dipped 3.24% to 3,772.17.

Hong Kong's Hang Seng index was down 1.25% in its final hour of trading, while mainland China's CSI 300 fell 1.54% to close at 4,655.9.

Australia's S&P/ASX 200 dropped 1.34% to finish at 9,077.3, after being one of the few markets on Monday to record a marginal gain.

Overnight in the U.S., the S&P 500 inched up 0.04% after rebounding late in the session. The Nasdaq Composite was higher by 0.36%, coming back from a 1.6% loss.

The Dow Jones Industrial Average fell 73.14 points, or 0.15%, settling at 48,904.78. At its lows, the Dow was down nearly 600 points.

—CNBC's Sean Conlon and Yun Li contributed to this report.