A roundup of trading on major world markets:
NEW YORK - US stocks fell sharply in early trade as lacklustre reports on Chinese and US manufacturing activity added to concerns about economic growth and emerging-market economies.
About 55 minutes into trade on Monday, the Dow Jones Industrial Average slumped 156.92 points (1.00 per cent) to 15,541.93.
The broad-based S&P 500 sank 18.85 (1.06 per cent) to 1,763.74, while the tech-rich Nasdaq Composite Index fell 51.31 (1.25 per cent) to 4,052.57.
Global markets already were dampened by China's purchasing managers index for manufacturing, which fell to 50.5 in January from 51.0 in December and 51.4 in November.
US stock losses accelerated after the Institute for Supply Management reported that US manufacturing activity fell sharply in January. The ISM index sank to 51.3 from 56.5 in the previous month.
LONDON - European stocks have tumbled as lacklustre reports on Chinese and US manufacturing activity outweighed the eurozone hitting a 32-month high in January.
London's benchmark FTSE 100 index ended the day down 0.69 per cent at 6,465.66 points on Monday, while Frankfurt's DAX 30 dropped 1.29 per cent to 9,186.52 points and the CAC 40 in Paris fell 1.39 per cent to 4,107.75 points.
Milan tumbled 2.63 per cent and Milan gave up 1.96 per cent.
The European single currency rose to $US1.3529 from $US1.3487 late in New York on Friday.
HONG KONG - Asian markets sank further in holiday-thinned trade, following another global sell-off caused by anxieties over emerging markets and further disappointing manufacturing data out of China.
The euro edged up against the yen after falling in New York in response to weak eurozone inflation figures that added to fears of deflation in the currency bloc.
Tokyo fell 1.98 per cent, or 295.40 points, to 14,619.13 and Seoul slipped 1.09 per cent, or 21.19 points, to 1,919.96 while Sydney closed flat, edging down 2.1 points to 5,187.9.
However, Bangkok was up 1.10 per cent despite chaotic weekend elections that saw thousands of polling stations closed by opposition protesters following weeks of anti-government demonstrations.
Shanghai, Hong Kong, Taipei and Kuala Lumpur were closed for the lunar new year holiday.
WELLINGTON - The NZX 50 Index fell 25.081 points, or 0.5 per cent to 4849.502.