MSCI's broadest index of Asia Pacific shares outside Japan was down by 1.3 per cent while Japan's Nikkei stock index slid by 2.29 per cent.
IT major HCL Technologies was up by 2.5 per cent while Tata Consultancy Services and Wipro gained 1 per cent each.
Iran, Saudi Arabia, Kuwait, Iraq, Turkey and Afghanistan imposed travel and immigration restrictions as fears mounted that the coronavirus outbreak in China will grow into a pandemic with deadly consequences for countries around the world.
Yes Bank slipped by 1.5 per cent after the National Stock Exchange (NSE) said it will cease to be a part of Nifty 50 index from March 27.
Bharti Infratel, Britannia and ITC too traded with a negative bias. However, GAIL, Bharti Airtel, Eicher Motors and UltraTech Cement gained by thin margins.
ONGC lost by 2.76 per cent after reporting 44 per cent decline in third quarter net profit at Rs 5,384 crore. The other prominent losers were Bharat Petroleum Corporation, IndianOil Corporation, Coal India, Cipla, Adani Ports and Bajaj Finserv.
MSCI's broadest index of Asia Pacific shares outside Japan ticked up by 0.3 per cent, led by gains in Hong Kong and South Korea. But Japan's Nikkei dropped by 0.55 per cent after news of first coronavirus death.
But Japan's Nikkei stock index advanced by 0.4 per cent and South Korea's Kospi also added 0.5 per cent. Markets in China were closed for a holiday.
IndianOil Corporation fell by 4.08 per cent while index heavyweight Reliance Industries dropped by 3.09 per cent to Rs 1,532.20 per share. The other prominent losers were Coal India, NTPC, Tata Consultancy Services, Adani Ports, Axis Bank and Bajaj Finance.
Asian shares traded higher as Wall Street extended its run of record peaks on solid US economic data. But prices jumped as oilfields in southwest Libya began shutting down after forces loyal to Khalifa Haftar closed a pipeline, potentially reducing national output to a fraction of its normal level.