Global stock markets have picked up where Wall Street left off, plunging into negative territory. S. stocks plunged in highly volatile trading on Monday, with the Dow industrials falling almost 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially higher inflation.
The Dow ended at 24,345.
On its way there, the Dow took several harrowing turns during the day, opening with a plunge of 567 points - coincidentally, the exact same amount it wound up gaining at the closing bell.
The 225-issue Nikkei average dived 1,071.84 points, or 4.73 percent, to finish at 21,610.24, the lowest closing level since October 20 previous year. Boeing lost 2 percent and Caterpillar was down 1 percent. By Tuesday, it was once again slightly higher for 2018.
Traders are now wondering if "last week's reversal in USA stocks and the ugly close Friday.is likely the start of something bigger", said Greg McKenna, chief market strategist at currency trading platform AxiTrader.
By early afternoon in Asia, Dow and S&P futures were both down more than 4 percent, suggesting a weak open for USA markets. At the time of writing the FTSE 250 was down by 1.4% and the FTSE All-Share index was showing a loss of 1.3%.
The broader-based TOPIX index finished 90 points lower, at 1,732.
Sharp drops on Friday and Monday erased the gains the Dow and S&P 500 made this year.
At one point the Dow was down as much as 1,600 points.
"The main reason for the decline on the U.S stock market is that the recent figures released by the USA looked pretty strong", explained Lu Zhengwei, chief economist at Shanghai-based Industrial Bank. As President Trump keeps reminding us on Twitter, the U.S economy also looks solid, with unemployment at a 17-year low. I think we are pretty close to a selling climax here. "This isn't a concern that markets aren't going to do well", said Erin Gibbs, portfolio manager for S&P Global Market Intelligence.
The dollar was trading at 109.10 yen against 109.13 yen in NY, sharply lower than rates around 110 yen seen a day earlier.
The Standard & Poor's 500 index fell 14 points, or 0.5 percent, to 2,748. The Nasdaq composite was little changed at 6,968.
The Nikkei 225 fell the most since 2015 and trading volume was more than double the 30-day average.
Stock markets in Asia and the Pacific region plunged on Tuesday morning as the global equity rout continued for a third day.
The trigger for the sell-off was a sharp rise in USA bond yields following Friday's data that showed U.S. wages increasing at the fastest pace since 2009, raising the alarm about higher inflation and with it potentially higher interest rates.
Other banks also fell.
The 225-issue Nikkei Stock Average dropped 1,071.84 points, or 4.73 percent, from Monday to close the day at 21,610.24.