Asian stocks slumped to a two-week low today after weak US jobs data heightened fears of recession in the region's top export market.
Oil prices - which hit a record above $100 barrel just last week - fell on concern global demand would suffer from a US-led slowdown, but the dollar edged higher from a six-week low on Friday as some saw the currency as oversold.
MSCI's measure of Asia Pacific stocks excluding Japan lost 2.3 per cent by 6.18am. Earlier, the index hit its lowest since December 21st.
The index has dropped 3.3 per cent this year, weighed down by concerns about the world's top economy.
European stocks are also forecast to fall today according to financial bookmakers, with Britain's FTSE 100 seen down between 10 to 18 points and the German DAX expected 27 to 33 points lower.
Tokyo shares dropped to a 17-month low at one point, ending down 1.3 per cent, after slumping 4 per cent on Friday, their first trading day of the year.
Taiwan stocks shed 4.1 per cent, while other markets such as Australia, Hong Kong and Singapore were down more than 2 per cent each.
Exporters such as South Korean auto maker Hyundai Motor were hit hard after the US non-farm payrolls figures showed US job growth skidded to a near-halt in December and unemployment rose to a two-year high.