Japan's Nikkei 225 index experienced a significant downturn, falling below 37,000 for the first time since February 9, driven by sharp losses in chip-related stocks and escalating tensions in the Middle East. The index plummeted over 3%, marking one of its worst one-day drops in three years. Specifically, the Nikkei fell 3.31% to 3.5%, placing Japanese stocks into a technical correction, having fallen more than 10% from recent highs. The broader Asian markets also faced declines, with stocks across the region sinking due to the Middle East tensions and an attack by Israel on Iran.