Asian equities traded mostly lower on Thursday, with Japanese shares sharply lower, after preliminary data showed that Chinese manufacturing activity slowed to a 7-month low in February.
The HSBC China flash purchasing managers' index (PMI) for February fell to 48.3, from a final reading of 49.5 in January, further suggesting that the world's second-largest economy may be facing a slowdown.
(Read more: Frail emerging markets a hot topic at G20 meeting)
Overnight losses on Wall Street also added to the downbeat mood.
The snapped an eight-day winning streak, falling over 0.8 percent. The fell over 0.6 percent, while the blue-chip dropped 0.6 percent after minutes from the Federal Reserve's latest policy meeting suggested that tapering will continue unless there is a big economic surprise.
Nikkei drops 2.2%
Japan's benchmark Nikkei index extended Wednesday's losses to close at 14,449 following trade data.
The country logged a record monthly trade gap in January as Imports outpaced exports resulting in a deficit of 2.79 trillion yen ($27.30 billion), versus a 2.5 trillion yen shortfall anticipated by analysts.
(Read more: Japan exports up 9.5% in January, short of expectations)
Exporter stocks felt the pressure of a stronger yen, which traded at 101.80 against the U.S. dollar. Fast Retailing tumbled over 3 percent on news that it plans to list directly in Hong Kong. Automakers Honda Motor and Suzuki Motor slipped over 2 percent each.
E-commerce group Rakuten fell over 4 percent on news that it would buy a mobile voice messaging application for $900 million in cash.
Tokyo Electric Power was also in negative territory on Thursday. It posted a 2.3 percent loss after news revealed that 100 cubic meters of contaminated water leaked from the Fukushima tank area.