Weak U.S. data causes Nikkei to plummet 4%, leading losses in Asia after Wall Street falls.

• Nvidia's selloff in the U.S. may cause investors in Asia to monitor the impact on its suppliers, including Taiwan Semiconductor Manufacturing Company, SK Hynix, and Samsung Electronics.
• The worst day for U.S. markets since Aug. 5 was caused by weak manufacturing data, which increased recession fears.

On Wednesday, Asia-Pacific markets fell, with Japan leading the way, after U.S. tech stocks dropped and weak U.S. economic data fueled recession concerns.

In Asia, Japan's stock market led losses with a 4.01% decline, while the broad-based Topix also fell by 2.74%.

On the index, semiconductor-related stocks such as plunged 10%, lost 7.3%, and tumbled over 9%.

Nvidia, which owns chip designer Arm, experienced a 5.7% decline. Arm creates chips for Nvidia.

The open market in South Korea lost 2.61%, while the small cap Kosdaq experienced a 2.94% decline.

Both Nvidia suppliers, Samsung Electronics and SK Hynix, experienced losses of 2.76% and 6.95% respectively.

Australia's S&P/ASX 200 lost 1.46%.

The HSI's last close of 17,651.49 was higher than Hong Kong's futures at 17,487.

In the US, Nvidia experienced a 9% loss in regular trading, causing other chipmakers like Intel, AMD, and Marvell to also suffer.

The SMH ETF, which represents semiconductor stocks, experienced a 7.5% decline, marking its worst day since March 2020.

The ISM manufacturing index for August was 47.2%, up 0.4 percentage points from July, but below the 47.9% expected from Dow Jones. The gauge measures the percentage of companies reporting expansion, so anything below 50% represents contraction.

Since the Aug. 5 global sell-off, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all recorded their worst days. The Dow Jones fell 1.51%, the S&P 500 down 2.12%, and the Nasdaq Composite saw the largest loss with a tumble of 3.26%.

—CNBC's Fred Imbert and Alex Harring contributed to this report.