Japan's Nikkei fell sharply for a second straight session on Thursday as investors locked in profits from a recent run-up in technology shares.
The Nikkei accelerated losses in the afternoon, sliding 0.85% to close at 31,641.27. The broader Topix dropped 0.67% to 2,191.50.
Sony Group declined 1.65%, while semiconductor materials supplier Hoya sank 3.89%. SoftBank Group fell 1.47%.
Drugmaker Eisai surged 7.37%, leading gains on the Nikkei, after U.S. regulators gave a positive reading of a late-stage trial of its Alzheimer's disease treatment.
The Nikkei plunged the most in three months on Wednesday, trimming a blistering 15% surge over the past three months that has outpaced global peers.
"The market has not completely broken out of its overheated state," said Nomura strategist Miki Sawada. "Growth stocks and semiconductor-related stocks, which had been rising recently, are being sold off."
U.S. equities fell overnight as investors awaited key inflation data as well as the Federal Reserve's policy meeting next week, where the central bank is expected to hold off on raising interest rates.
Japan's economy grew more than initially thought in January-March, revised data showed, fueled by a post-pandemic pickup in corporate and consumer spending.
Of the Nikkei components, 147 stocks fell, while 78 gained.
The precision machinery sector lost 2.59% to become the worst performer among the Tokyo Stock Exchange's 33 industry sub-indexes.
Shippers were the biggest gainers, adding 2.28%.
In the broader market, internet retailer Syuppin jumped 6.77%, after reporting sales grew more than 16% in May. (Reporting by Rocky Swift; Editing by Rashmi Aich and Savio D'Souza)