Hong Kong's Hang Seng Index sank 13 percent after money- market rates rose, and the Philippines' benchmark gauge plunged 12 percent, triggering a temporary trading halt.
The MSCI World Index lost 3.1 percent to 844.82 at 8:27 a.m. in London. Futures on the Standard & Poor's 500 Index dropped 3.7 percent, indicating the market may extend the biggest monthly plunge in 70 years. Europe's Dow Jones Stoxx 600 Index declined 4.7 percent, headed for its worst month on record. The MSCI Asia Pacific Index sank 6.3 percent, extending a three-day, 13 percent retreat.
UBS AG, Switzerland's largest bank, and Deutsche Bank AG, Germany's biggest, retreated more than 6 percent. Daimler AG slipped 6.4 percent after Frankfurter Allgemeine Sonntagszeitung reported the carmaker may halt production for five weeks.
Asian money-market rates rose amid speculation the global credit crisis is worsening even after governments and central banks pledged to spend trillions of dollars worldwide to revive lending.
The S&P 500 has plunged 25 percent in October, headed toward the steepest monthly loss since 1938. The MSCI World Index is down 29 percent this month, and a close at this level would be the biggest monthly decline since records began in 1970.
Europe's Dow Jones Stoxx 600 Index has fallen 26 percent this month, also headed for its worst month on record. The benchmark index for Europe lost 24 in October 1987.
The Stoxx 600 has tumbled 48 percent this year as $680 billion of asset writedowns and credit losses by banks triggered a freeze in credit markets. The benchmark is valued at 8.2 times the reported earnings of companies in the index, the lowest since Bloomberg began tracking the data in 2002.
London equities continued to fall fast on Monday, after fears of a global recession spelt big losses for Japanese banking stocks and took the Nikkei 225 to a 26-year closing low.The FTSE 100 surrendered 114 points to 3,770.04, a loss of 2.7 per cent, with financial stocks once more at the vanguard of the selling on fears that the sector had further to fall against a backdrop of global recession.
Japan's Nikkei 225 Stock Average fell to a 26-year low as Mitsui O.S.K. Lines Ltd. cut earnings predictions and the yen rose for a fifth day, reducing the value of the country's exports. The Nikkei 225 fell 6.4 percent to 7,162.90, its lowest level since October 1982, paced by Honda Motor Co. and Canon Inc.
China's stocks fell, sending the CSI 300 Index to its biggest loss in four months, on concern corporate profits will weaken further as the economy slows. The CSI 300 Index, which tracks yuan-denominated shares traded in Shanghai and Shenzhen, fell 126.93, or 7.1 percent, to 1,654.67 at the close, the steepest decline since June 19 and the lowest close since Nov. 28, 2006.
Indian stocks fell, with the Sensitive Index extending a 19 percent three-day decline, on concern government measures will fail to support growth and company earnings will falter. The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, dropped 733.9, or 8.4 percent, to 7,967.17 as of 12:50 p.m. local time, the lowest level since November 2005.