Asian indexes tumbled and U.S. stock indexes fell on Tuesday following massive losses seen stateside in the last session.
Japan's Nikkei 225 was down 6.71 percent, or 1,522.70 points, as stocks across sectors pulled back. Automakers, financials and technology names were lower in the morning, with Toyota down 4.75 percent.
Among other blue chips, SoftBank Group tumbled 7.94 percent and Fanuc Manufacturing lost 7.86 percent. Fast Retailing sank 8.14 percent.
Across the Korean Strait, the Kospi declined 2.61 percent. Blue chip technology names were lower, with Samsung Electronics and SK Hynix down 2.21 percent and 1.57 percent early in the session. Among automakers, Hyundai Motor traded briefly in positive territory, but later slipped 2.2 percent.
Down Under, the S&P/ASX 200 declined 3.65 percent on broad-based selling across sectors. The energy sub-index was among the worst-performing in the morning, falling 5.1 percent as energy-related stocks declined following oil prices' move lower. Santos fell 5.02 percent and Oil Search lost 4.17 percent.
The heavily weighted financials sector was also sharply lower, with Australia's "Big Four" banks trading in negative territory on the day. ANZ was down 3.31 percent and Westpac tumbled 3.58 percent.
The Hang Seng Index was down 4.94 percent as stocks sold off across sectors. Among financials, heavyweight HSBC fell 3.14 percent and China Construction Bank lost 6.55 percent. Tech giant Tencent tumbled 5.9 percent. Energy-related stocks also extended declines on Tuesday, with CNOOC tumbling 6.79 percent.
Mainland stocks, which had risen in the last session, followed the region lower on Tuesday. The Shanghai composite slid 2.15 percent and the Shenzhen composite lost 2.71 percent.
Other market indexes in the region also took a beating on Tuesday: Taiwan's Taiex lost 5.6 percent, Vietnam's benchmark VN Index fell 5.87 percent and Malaysia's KLCI tumbled 2.7 percent.
New Zealand markets were closed for a public holiday.
US futures point to continued sell-off
Dow futures were down 826 points, and S&P 500 futures were lower by 76.5 points as of 12:25 p.m. HK/SIN. The implied open for the Dow, based on the futures, was a decline of more than 1,200 points.
The sell off in U.S. stock markets on Monday was a continuation of Friday's weakness as investors rushed for the exits in the wake of rising interest rates.
The Dow Jones industrial average tumbled 1,175.21 points, or 4.6 percent, to close at 24,345.75, breaking below the 25,000 level. The 30-stock index briefly declined more than 1,500 points on Monday and traveled more than 5,100 points during the session.
"There was no specific catalyst outside of stops being triggered at 25,000 and when that happened, the Dow briefly plunged below 24,000, but concerns about the negative impact of rising yields have been the primary driver of the sell-off that began on Friday," Kathy Lien, managing director of FX strategy at BK Asset Management, said in a note.
Correspondingly, U.S. government bond prices rose overnight on safe-haven demand. The yield on the benchmark 10-year U.S. Treasury note last stood at 2.7093 percent after rising as high as 2.88 percent on Monday.
Meanwhile, on the economic front, Australia's central bank on Tuesday kept interest rates unchanged at 1.5 percent. In a statement, the Reserve Bank of Australia also said it expected a gradual pick-up in inflation in the economy.
also cited In currencies, the dollar index, which tracks the U.S. currency against a basket of rivals, stood at 89.651. Against the yen, the greenback extended losses to trade at 108.51, below an overnight low of 108.97.
The Australian dollar was softer at $0.7839.On the energy front, oil prices extended losses after declining in the last session on the firmer dollar. U.S. West Texas Intermediate crude fell 1.18 percent to trade at $63.39 per barrel and Brent crude futures lost 1.11 percent to trade at $66.87.