The three main US indices all slumped around one percent on Monday, adding to Friday's losses, with Tesla down 3.3 percent and Facebook owner Meta off 1.4 percent.
Volumes were thin but brokers said investors were locking in gains after a bumper 2024, particularly for the "Magnificent Seven" troop of US tech giants.
Concerns about the slow pace of US interest rate cuts by the Federal Reserve and uncertainty about incoming president Donald Trump's tariff plans were also souring the mood.
"In Asia, notably China, tariffs may appear to be a manageable obstacle if they were the only concern," said Stephen Innes at SPI Asset Management.
"However, China's economic difficulties go well beyond simple trade conflicts. The nation is also contending with serious domestic consumption challenges and self-induced setbacks in its technology sector," Innes said.
China's Purchasing Managers' Index (PMI) for manufacturing was 50.1 in December, signalling a third consecutive month of expansion, official data showed on Tuesday.
President Xi Jinping said China would put in place "more proactive" macroeconomic policies next year, according to state media, with economists warning that more direct fiscal stimulus aimed at shoring up domestic consumption was needed.
Shanghai's Composite Index closed down 1.6 percent on the last day of the year at 3,351.76.
Stocks in Sydney, Taipei and Wellington were all down.
Tokyo was spared the year-end ennui after the Nikkei 225 shut up shop on Monday with its best year-end close since Japan's asset bubble burst in the 1990s.
Hong Kong was a rare bright spot among other Asian indices on Tuesday, but only just, closing up 0.1 percent at 20,059.95.
Seoul also closed on Monday, before another day of tragedy and turmoil in South Korea.
Rescuers handed over the first bodies from the crash of a Jeju Air Boeing 737-800 to grieving families on Tuesday, South Korea's deadliest air disaster on its own soil in which 179 people were killed.
Boeing shares fell more than five percent on Wall Street on Monday before recovering.
On the political front, a South Korean court issued an arrest warrant for Yoon Suk Yeol, the impeached and suspended president who briefly declared martial law on December 3.
- Key figures around 0800 GMT -
Tokyo - Nikkei 225: closed
Hong Kong - Hang Seng Index: UP 0.1 percent at 20,059.95
Shanghai - Composite: DOWN 1.6 percent at 3,351.76
Euro/dollar: UP at $1.0413 from $1.0401 on Monday
Pound/dollar: DOWN at $1.2554 from $1.2548
Dollar/yen: UP at 156.16 yen from 156.41 yen
Euro/pound: DOWN at 82.95 pence from 82.93 pence
West Texas Intermediate: UP 0.7 percent at $71.49 per barrel
Brent North Sea Crude: UP 0.7 percent at $74.49 per barrel
burs-pbt/lb
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