The after-shocks of Wall St's nosedive are being felt across the Pacific and now Asia, as markets open for the day.
The Australian share market plunged five per cent in early trade after reports in the US stoked fears of a recession in the world's biggest economy.
Justafter opening, the benchmark S&P/ASX200 was down 232.4 points, or 5.4 per cent, at 4,067.6, while the broader All Ordinaries slipped 233.1 points, or 5.46 per cent, to 4,039.4.
Japan's key stock index was worse hit, dropping more than 9 per cent in early trade.
The benchmark Nikkei 225 stock average nose-dived 887.78 points, or 9.3 per cent, to 8,659.69 an hour after the opening bell.
In Australia, the big miners led declines after the drop in commodity prices.
BHP Billiton lost A$2.70, or 9.1 per cent, to A$27, while rival Rio Tinto dropped A$10.60, or 13.5 per cent, to A$67.90.
Australian Banking stocks were also down.
National Australia Bank dropped 87 cents, or 3.7 per cent, to A$22.85, Commonwealth Bank fell A$1.45, or 3.3 per cent, to A$42.30 and ANZ Banking Group decreased 87 cents to A$17.33.
Westpac sank 61 cents to A$22.09 and its takeover target St George Bank lost 98 cents to A$28.87.
Investment firm Macquarie Group fell A$2.98, or 8.6 per cent, to A$31.84.
A US government report that retail sales plunged in September by 1.2 per cent made it clear that consumers are reluctant to spend.
The release of the Beige Book, the assessment of business conditions from the US Federal Reserve, found that the economy continued to slow in the early autumn because of the difficulty obtaining loans.
A sell-off that intensified late in the session on Wall Street overnight caused the Dow Jones Industrial Average to close down 7.87 per cent to 8,577.91.
