US stocks fell sharply in morning trading as fears over the spreading coronavirus continue to unsettle global markets. The Dow Jones Industrial Average fell over 400 points after the Opening Bell.
HONG KONG - Asian markets tumbled again on Tuesday, extending a global sell-off as the toll from a rapidly spreading Chinese virus spiked to more than 100 dead and thousands infected, with investors fretting over the impact on an already fragile world economy.
Traders have been running for the hills as the coronavirus is reported in more countries, with oil also tanking on expectations that demand in China, the world's top consumer of the commodity, will be hammered.
The outbreak comes during the Lunar New Year break when hundreds of millions of people criss-cross China and spend huge amounts of money.
The government has sealed off Wuhan, the epicentre of the outbreak, and other cities in Hubei province, effectively trapping tens of millions of people including thousands of foreigners in a bid to contain the virus.
It has also extended the holiday, initially due to end on January 30, for three days to limit population flows.
Analysts said there were growing fears the crisis could become as bad as the SARS outbreak that hammered markets and the global economy 17 years ago.
The VIX "fear" index, which measures market volatility, soared by a quarter Monday to its highest level since October, when investors were worried about the China-US trade talks.
READ: Coronavirus: China death toll spikes to 80, over 2,700 cases confirmed
The crisis comes just as the world economy was showing signs of stability after a long-running growth slowdown.
In early trade, Seoul plunged more than three percent and Singapore shed more than two percent while Sydney was off 1.4 percent as investors in those markets returned from a long holiday weekend.
Manila lost more than one percent, while Wellington was off 0.9 percent and Tokyo went into the break 0.9 percent down.
The losses tracked hefty selling in Europe and New York.
Stocks are falling across the board, with tourism-linked firms such as airlines and casinos among the hardest hit, while there are also big drops in electronics firms such as Samsung in Seoul and Sony in Tokyo as traders contemplate weak sales in China over the holiday.
Gold, a safe haven in times of uncertainty, was slightly lower by hovering near the $1,600 mark, while higher-yielding currencies such as the South Korean won and South African rand were also down.