Japan's Nikkei average fell 2.1 percent on Tuesday, with exporters bearing the brunt of the selling following sharp gains in the yen against the dollar and an overnight stock slide on Wall Street.

Bank shares were hit, tracking falls in U.S. financial stocks amid renewed concerns for subprime problems. The Nikkei ended down 320.34 points to 14,814.87, while the broader TOPIX shed 2.1 percent to 1,435.82.