Asia-Pacific markets pare losses following Wall Street sell-off

Asia-Pacific markets slid on Tuesday, tracking losses in the U.S. following anxiety over tariff policy and a potential recession in the world’s largest economy.

Japan’s Nikkei 225 fell 1.18%, paring steeper losses earlier in the session, while the broader Topix index fell 1.64% in its last hour of trade.

Significant losses in the Nikkei 225 were seen in imaging and network technology operator Konica Minolta, which was down 7.52% and electric and optical fiber cables manufacturer Sumitomo Electric Industries, which lost 5.79%.

Japan’s revised GDP for the fourth quarter came in at 2.2% on an annualized basis, below economists’ expectations and the previous estimate of 2.8% growth.

South Korea’s Kospi was trading 1.19% lower, while the small-cap Kosdaq dipped 0.88%.

Hong Kong’s Hang Seng Index fell 0.75%, while Mainland China’s CSI 300 slid 0.66%.

Meanwhile, Taiwan’s Taiex index was down 1.61%, paring losses from an over 3% drop earlier in the session.

Elsewhere, Australia’s S&P/ASX 200 closed 0.91% lower at 7,890.10, reversing course from gains in the previous session.

Over in India, the benchmark Nifty 50 was flat in early trade, while the BSE Sensex dipped 0.27%.

Overnight in the U.S., stocks slid amid fears that Trump’s tariff policy could push the U.S. into a recession.

The S&P 500 shed 2.7%, after touching its lowest level since September at one point. The tech-heavy Nasdaq Composite saw the sharpest decline, falling 4%, in its worst session since September 2022. The Dow Jones Industrial Average dropped 2.08%, ending at 41,911.71.

The S&P 500 is off 8.7% from its all-time high on Feb. 19, while the Nasdaq Composite is off nearly 14% from its recent high. A 10% decline is considered a correction on Wall Street.

The losses worsened as the day progressed, but the major averages came off their session lows just before the close.

— CNBC’s Lisa Kailai Han and Jesse Pound contributed to this report.