Japanese shares led losses across Asian markets on Wednesday as investors continued to fret over falling oil prices.
In Tokyo, the benchmark Nikkei 225 closed down 1.7% at 16,795.96, marking its lowest close since 17 December.
Oil-related shares led the fall on the index with top refiner JX Holdings falling 4% and Showa Shell losing 2.8%.
A flight into safer investments saw the US dollar weaken to 117.84 yen, from 117.90 yen in New York trade.
Oil prices continued to slide to near six-year lows. Brent crude dropped below $46 a barrel to $45.80, while US crude fell to $45.34 a barrel.
Analysts said the sell-off in energy shares amid the oil slump was seen by some investors as a sign of weaker global economic growth.
However, the World Bank said lower oil prices would benefit some countries.
In its bi-annual report, the bank predicted global growth of 3% this year and 3.3% next year, below its June forecast of 3.4% and 3.5% respectively.
Australian shares closed lower, with the S&P/ASX 200 down 1% at 5,353.6 points.
Miners were the heaviest hit with shares of giant Rio Tinto finishing down 3.3%.
Meanwhile, shares of oil and gas exploration firm Santos were up more than 2% after its chief executive David Knox said he was considering an asset sale in the wake of falling oil prices.