The Nikkei is down 2.1% to 14,902, as a strong yen weighed on stocks, and on profit taking.
"The Nikkei is down 2% as risk aversion radiates and propagates from China to Asia," Societe Generale's Sebastien Galy wrote in an email to clients.
Here's a look at the stunning sell-off:
Meanwhile, copper continues to plunge and it's a sea of red in Asia.
Hong Kong's Hang Seng is down 1.5%.
China's Shanghai Composite is down 0.3%.
Australia's S&P/ASX 200 is down 1.1%
China already experienced its first domestic bond default last week, and now markets are concerned that electrical equipment and solar panel maker, Baoding Tianwei Baobian Electric, will be the next domino to fall.
More From Business Insider
- 19 Things The Millionaire Next Door Won't Tell You
- A Rapper Went To Jail For 5 Years And Here's The Technology He Couldn't Believe When He Got Out
- PILOT: I'm Starting To Think Something Nefarious Happened To The Malaysia Plane
- Malaysia's Military Thinks Missing Plane Turned, Then Flew 350 Miles With Its Tracking Systems Off
- ANALYST UPGRADES APPLE: The iPhone 6 Is Going To Be Huge