Tokyo's Nikkei index shed more than three percent on Monday, after weaker than expected US jobs growth and speculation over a Fed rate cut caused global markets to slump.
The benchmark Nikkei 225 was down 3.02 percent, or 1,098.77 points, at 35,292.70 in early trade, while the broader Topix index fell 2.67 percent, or 69.28 points, at 2,528.14.
The dollar fetched 142.60 yen, against 142.29 yen on Friday in New York.
"Japanese markets are expected to start with a significant decline due to losses in US markets as well as caution over the strong yen," said senior market analyst Toshiyuki Kanayama of brokerage Monex.
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Japan's currency has recently picked up on bets of a US Federal Reserve interest rate cut and growing expectations that the Bank of Japan will continue to raise its own borrowing costs.
US jobs data came in below analyst estimates on Friday, pointing to a slowing economy and causing shares to tumble.
"Global jitters and a suddenly stronger yen are dragging down the index, further compounding the risk-off mood gripping markets," said Stephen Innes in his Dark Side Of The Boom newsletter.
In Tokyo, semiconductor shares plunged, with Tokyo Electron sinking 5.77 percent to 20,730 yen and Advantest dropping 5.85 percent to 5,525 yen.
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Automakers were lower, with Toyota falling 3.14 percent to 2,501.5 yen and Honda losing 3.47 percent to 1,474.5 yen.
Seven & i Holdings, the Japanese owner of the 7-Eleven convenience store chain, jumped 2.84 percent to 2,194 yen after Bloomberg Bloomberg News said Canadian retail giant Alimentation Couche-Tard remains "highly focused" on sealing a takeover deal.
The report came after Seven & i on Friday said it had rejected an initial offer from Couche-Tard, saying the proposal "grossly undervalues" the company.
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