TOKYO: Japan's Nikkei share average slid 1.5 per cent early on Thursday, taking cues from an overnight tumble on Wall Street.
Investors were also cautious ahead of a policy decision from the Bank of Japan later in the trading day, with most market participants expecting officials to forgo an interest rate hike this time following recent media reports from Reuters and other news outlets.
"As much as the data is making the case for a December hike, reading the BOJ tea leaves, it is clear the Bank has a preference to wait a little bit longer," said Tapas Strickland, head of market economics at National Australia Bank, who expects a quarter-point rise in January.
The Nikkei was 1.5 per cent lower at 38,487.32 at 0010 GMT, while the broader Topix sank 1.3 per cent.
Tech shares led declines on the Nikkei, with Advantest down 3.9 per cent, Tokyo Electron losing 2.9 per cent, and startup investor SoftBank Group tumbling 4.3 per cent.