South Korea's benchmark Kospi index fell as much as 3.6%, with chip stocks weakening after Fed Chair Kevin Warsh delivered hawkish remarks and vowed to fight inflation. According to Sina Finance, Samsung and SK Hynix were the biggest drags on the index, each falling more than 3%.

Foreign investors were net sellers of Kospi shares in early trading, while retail investors bought. The Kosdaq small-cap index also fell as much as 4%.