In early trading, the key average on the Tokyo Stock Exchange was down 323 points, or 3.18 percent, to 9,833 points.

The Dow Jones Industrial Average lost 508 points, or about 5.11 percent, Tuesday to close at a five-year low 9,447. The index has lost nearly 900 points in the previous two sessions.

Hong Kong's Hang Seng index also took a big hit after Wednesday's opening. In early trading, the index had given up nearly 879 points, or 4.97 percent, to 16,804.

South Korea's KOSPI was off more than 3 percent early Wednesday. Australian stocks also were down after opening.

Adding to South Korea's woes was the country's currency dipping further. The Yonghap Yonhap news agency reported the won declined for the fourth straight day early Wednesday, trading at 1,382 against the U.S. dollar, down 53.9 won from the previous session, its lowest level in nearly 10 years.

Analysts blamed the won's fall on the global credit crunch, creating a scramble for the dollar.