Equity markets followed the lead set on Wall Street Tuesday with stocks in Europe and Asia seeing significant losses as sentiment turned sour.
Overnight, Japan's Nikkei 225 closed down 4.73 percent, as stocks across all sectors pulled back. Automakers, financials and technology names were lower on the day, with Toyota down 2.87 percent. The Hang Seng Index closed down by over 5 percent with heavyweight HSBC falling around 3 percent and China Construction Bank losing nearly 4 percent.
In Europe, shares hit a six-month low during the morning session. The pan-European Euro Stoxx 600 fell for the seventh straight session, losing 3.2 percent at the open before paring some of those losses by midday. At the same time, the STOXX 50 volatility index, the main gauge of market anxiety in Europe, surged 8.1 points to a high of 27.5, according to Reuters. This was its biggest spike since the September 11 attacks, according to the news agency.
Meanwhile, emerging equities slid 3 percent on Tuesday and the MSCI benchmark emerging stocks index was set for its worst daily fall since November 2016.