Stock markets聽tumbled on Friday over concerns about the health of the US聽economy聽after data showed the US jobs market cooled much more than expected in July.
Wall Street opened sharply lower, with the tech-heavy Nasdaq shedding more than 2.5 per cent, adding to the previous day鈥檚 losses with tech giant Intel sinking more than 28 per cent.
European stock markets were also in the red, with Frankfurt and others falling two per cent or more, while the dollar and oil prices fell.
The Tokyo stock market tanked by almost six per cent due to a stronger yen and the prospect of interest rate hikes in Japan.
While a weaker labour market raises the chances the US Federal Reserve will cut interest rates in September, it follows other data this week that fuelled concerns about the health of the world鈥檚 biggest聽economy.
鈥楢nd just like that, the market is worried about the US聽economy聽suffering a hard landing,鈥� said Briefing.com analyst Patrick O鈥橦are.
鈥楢 sober market didn鈥檛 need any more cold water poured on it, but that is exactly what it got with the July employment report, which was filled with ample headline disappointment,鈥� he said.
The Fed held its key lending rate at a 23-year high on Wednesday but chairman Jerome Powell indicated that it could make its first cut as soon as September.
The Fed has for months been looking for confirmation that inflation is well on the way down and the labour market is softening before cutting rates.
It has largely been confident in achieving a 鈥榮oft landing鈥� 鈥� slowing the聽economy聽down without tipping it into recession.
鈥楾he situation now shifts from 鈥榠f鈥� the Fed will cut to 鈥榖y how much鈥� will they cut,鈥� said Bret Kenwell, US investment analyst at trading platform eToro.
鈥楾he labour market is the lifeblood to the US聽economy聽and the Fed needs to ensure that they don鈥檛 risk weakening it too much solely in an effort to bring down inflation,鈥� he said.
The United States added 1,14,000 jobs last month, down from June鈥檚 revised figure of 1,79,000, while the unemployment rate rose to 4.3 per cent, according to government figures.
It followed news on Thursday that the US factory sector shrunk faster than forecast in July 鈥� and for the fourth consecutive month.聽
That came as another report showed the private sector created far fewer jobs than expected in July and many fewer than in June.
The news delivered a blow to investors, who are also dealing with a disappointing earnings season from Big Tech, a key driver of the global rally that has helped push many markets to multiple record highs this year.
Shares in US chip titan Intel sank more than 28 per cent after it announced it would slash more than 15 per cent of its workforce 鈥� about 18,000 jobs 鈥� as it streamlines operations. The firm reported a loss of $1.6 billion in the recently ended quarter.
In Asia, where markets closed before the latest US jobs data, Tokyo led losses.
The Nikkei 225 tanked 5.8 per cent 鈥� its biggest drop since the start of the pandemic four years ago 鈥� owing to a stronger yen, which hits Japan鈥檚 key export sector.
Hong Kong and Sydney were off more than two per cent, Seoul gave up more than three per cent and Taipei shed more than four per cent, with losses also in Shanghai, Mumbai, Singapore.
Wednesday鈥檚 decision by the Bank of Japan to hike interest rates for the second time in 17 years 鈥� and talk of another to come 鈥� strengthened the yen to its best level since March.
The dollar also weakened against the pound and the euro.