Asian stock markets are trading lower on Thursday, with Japan's Toshiba tumbling on credit downgrades while Takata soared as it nears a settlement with the U.S.Department of Justice related to faulty airbags for vehicles.

Japan's benchmark index, Nikkei 225 declined 210.53 points or 1.09 percent to trade at 19,191.19. China's benchmark index, Shanghai Composite fell 7.99 points or 0.26 percent to trade at 3,094.25. Hong Kong's Hang Seng lost 37.33 points or 0.17 percent to trade at 21,717.41.

Singapore's Straits Times lost 15.76 points or 0.54 percent to trade at 2,882.54. South Korea's KOSPI fell 2.70 points or 0.13 percent to trade at 2,021.79. Taiwan's TAIEX lost 15.17 points or 0.16 percent to trade at 9,186.23.