Japan's Nikkei average ended below 13,000 for the first time in two months on Thursday in choppy trade, extending its decline from a 5-1/2 year high hit last month to the verge of bear-market territory.
The Nikkei dropped 0.9% to 12,904.02, its lowest close since April 5. Trading was volatile with the index rising as high as 13,238.53 earlier.
If the Nikkei falls to 12,754, or down 20% from the 5-1/2 year high reached on May 23, it will have entered a bear market.
The Topix fell 1.8 % to 1,070.77.