Shares in Japan fell 4.5% on Tuesday morning as investors worried about the spread of the coronavirus.
The slump followed a global stock market plunge on Monday with Wall Street and London suffering big drops.
Japan’s Nikkei 225 index dropped sharply when it re-opened following a public holiday.
Overnight, Wall Street saw its sharpest daily declines since 2018, with the Dow Jones falling 3.5%.
Shares across Asia’s other major stock markets traded cautiously on Tuesday morning.
Hong Kong’s Hang Seng index dipped slightly, while South Korea’s Kospi edged up.
In China, the Shanghai Composite index was down nearly 1% amid mixed reports about efforts to contain the virus.
Investors remain worried about how far the coronavirus will spread rapidly outside of China, with raised fears of a prolonged global economic slowdown .
Japan saw a spike in cases last week to 773, mostly linked to patients from a cruise ship that had been under quarantine near Tokyo.
South Korea had reported South Korea reported a surge in cases in the past week centred in the city of Daegu with airlines suspending flights to the city.