Investors fled stocks as poor job numbers from the US, simmering European debt turmoil and slowdown signs in emerging markets, including China and India, raised concerns about the overall health of global economy.
Most of the Asian markets tumbled as much as nearly three per cent, while European shares were trading weak in the morning session.
South Korea's benchmark index Kospi plunged 2.80 per cent to end the day at 1,783.13 points. Similarly, Hong Kong's key Hang Seng index tumbled two per cent to close at 18,185.59 points.
China's Shanghai Composite Index tumbled 2.73 per cent to 2,308.55 points.
Japanese index Nikkei 225 plummeted 1.71 per cent to 8,295.63 points, especially as disappointing American job market data impacted investor sentiment. Japan is one of the world's largest exporters and sluggishness in other developed markets would have adverse impact on its economy.
Share markets in Singapore and Australia too closed in the negative territory.
However, India's 30-share Sensex managed to erase early losses to close flat at 15,988.40 points amid hopes of policy action to rejuvenate the country's slowing economy.
The US -- world's largest economy -- saw addition of just 69,000 jobs in May, while the unemployment rate climbed to 8.2 per cent during the same time. The data, released on Friday, came a day after American economic growth was revised lower to 1.9 per cent for three months ended March 31, 2012.
Compounding the woes, latest manufacturing data are pointing towards slowdown in China and India -- whose growth are important for global economic revival.
Amid persisting fears about eurozone, European stocks were in the red. In morning trade, Germany's benchmark Dax slumped 1.13 per cent to 5,982.09 points, while French index Cac 40 was marginally down at 2,959.87 points.
On Friday, the Wall Street took a severe beating and all the key stock indices -- Dow Jones Industrial Average, S&P 500 and Nasdaq Composite -- dropped over two per cent.
