Asian stocks dived on Tuesday after a record-breaking pasting on Wall Street, extending a global hubbub as alarmed investors worry over raising US borrowing costs and cash in profits after months of market euphoria.
Tokyo led a fall down throughout the region in early trade plunging more than five per cent, while Hong Kong was behind almost four per cent at one point and Sydney sank three per cent.
Dealers tracked their colleagues in New York, where the Dow experienced its worst points plunge in history, wiping out all its 2018 gains, while the S&P 500 also took a pasting to sit down for the year.
The heavy selling comes after months of surges stimulated by sanguinity over the US economy, corporate earnings and the international point of view. While traders have been supporting into equities, pushing many global indexes to record or multi-year highs, there has been rising distress on trading floors about lofty US Treasury bond yields -- at four-year highs -- and the likelihood of fresh Federal Reserve interest rate climbs.
The well known Vix "fear" index has been more than two times in US trade, while Sensex and Nifty opened in red. Among other Asian markets Singapore was 2.3 per cent off, Seoul plunged three per cent, Taipei lost 3.7 per cent, Manila plunged 2.7 per cent and Shan ghai tuned down 2.1 per cent.
The Dow Jones industrial average plunged more than 1,100 points Monday as stocks took their worst loss in six and a half years.