Asian markets are set for their largest weekly loss in nine months as investors worry about continued policy tightening and unrest in Egypt.
Daily losses ranged from 1% (Thailand and Korea) to 2% (Taiwan) last night as investors took profits from banking and resource shares.
The MSCI Asia Pacific exc Japan index is set to fall by more than 4% this week, its worst performance since May 2010, reports Reuters.
As more investors shift cash from emerging markets to the developed world, the broad sell-off in Asia has continued as inflationary concerns, growing tensions in Eqypt and tightening monetary policies cause volatility.
Analysts expect the sell-off could have further to run, particularly as most of the Asian region produced stellar returns last year.
Meanwhile, the FTSE 100 was flat this morning, falling 0.09%, or 5.44 points, to 6014.57. Disappointing corporate results and uncertainties over the situation in Egypt are expected to drag on the week's performance.
In the US, a speech given by Egyptian President Hosni Mubarak in which he delegated some powers to his vice president, sparked gains in the S&P 500 and Nasdaq in the final minutes, with both climbing 0.1%.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till