Tokyo's benchmark Nikkei index dropped more than 1.8 percent on Thursday, depressed by several factors including rising US bond yields and the struggles of property giant China Evergrande.

The Nikkei 225 index fell 1.87 percent, or 546.97 points, to 28,708.58, while the broader Topix index lost 1.32 percent, or 26.86 points, to 2,000.81.