Stocks in Asia fell again today to extend heavy selling in share markets around the world as investors concerned about a slowdown in global growth fled emerging markets to less risky assets.
Safe havens such as government bonds rallied, and the yield on the benchmark 10-year Japanese government bond fell 3.5 basis points to a seven-week low.
Investors had dumped emerging markets - from Russia and Latin America to India - sending stocks, bonds and currencies plummeting on Monday on investor concerns about prospects for higher interest rates and slumping commodity prices.
Asia's biggest stock market, the Nikkei average, fell 1.63 per cent to its lowest close in three months, while MSCI's broadest measure of non-Japan Asian shares was off more than 0.1 per cent.
The declines in Asia, followed more heavy falls from Europe to the Americas. The Dow Jones industrial average finished the day down 0.17 per cent, while the Nasdaq Composite Index lost almost 1 per cent.
Slower US economic growth could be particularly hurtful to Asia's export-oriented economies.
In Japan, exporters fell, with Honda Motor down 3 per cent to 7,330 yen on concerns that higher interest rates could hamper consumer spending in its key export market.