Trading floors were overcome by a wave of selling as investors fled to the hills, with Hong Kong's loss of 13.22 percent its worst in nearly three decades. Taipei socks suffered their worst fall on record, tanking 9.7 percent, while Frankfurt dived 10 percent and Tokyo shed almost eight percent.
US President Donald Trump sparked a market meltdown last week when he unveiled sweeping tariffs against US trading partners for what he said was years of being ripped off and claimed that governments were lining up to cut deals with Washington.
Beijing also imposed export controls on seven rare earth elements, including gadolinium -- commonly used in MRIs -- and yttrium, utilised in consumer electronics.
Hopes that the US president would rethink his policy in light of the turmoil were dashed Sunday when he said he would not make a deal with other countries unless trade deficits were solved.
No sector spared
Among the biggest losers, Chinese ecommerce titans Alibaba tanked 18 percent and rival JD.com shed 15.5 percent, while Japanese tech investment giant SoftBank dived more than 12 percent and Sony gave up 10 percent.
Shanghai shed more than seven percent, with China's state-backed fund Central Huijin Investment vowing to help ensure “stable operations” of the market.
Sydney, Wellington, Manila and Mumbai were also deep in the red, while London and Paris both dropped around five percent.
“If there’s a recession in the US, of course, China will feel it as well because demand for its goods will be hit even harder,“ he added.
Copper -- a vital component for energy storage, electric vehicles, solar panels and wind turbines -- also extended losses.
The losses followed another day of carnage on Wall Street on Friday, where all three main indexes fell almost six percent.
“Indeed, the only other times we’ve seen a double-digit loss over two sessions were during Covid-19, the height of the (global financial crisis), and Black Monday 1987.”
“Powell’s hands are tied,“ said Stephen Innes at SPI Asset Management. “He’s acknowledged the obvious -- that tariffs are inflationary and recessionary -- but he’s not signalling a rescue.”
Key figures around 0815 GMT
Hong Kong - Hang Seng Index: DOWN 13.2 percent at 19,828.30 (close)
London - FTSE 100: DOWN 4.6 percent at 7,686.66
Brent North Sea Crude: DOWN 4.0 percent at $62.99 per barrel
Euro/dollar: UP at $1.1019 from $1.0962
Euro/pound: UP at 85.36 pence from 85.01 pence
New York - Dow: DOWN 5.5 percent at 38,314.86 (close)
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