Asia markets live: Stocks set to plunge

Japanese markets led losses in the region, with the benchmark Nikkei 225 falling over 2% shortly after the open, while the broader Topix index fell 1.57%.

The country’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 started the day 1.78% lower, while the small-cap Kosdaq plunged 2.11%.

Australia’s S&P/ASX 200 fell around 1.28% in early trade, reversing course from gains in the previous session.

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.