Asian markets fell overnight after data was released showing foreign investment into China slowed for a fifth month in a row.
China received $11.76bn as foreign direct investment in March, 6.1% lower than March 2011, the commerce ministry said.
The fall, the fifth consecutive month it has declined, raises further concerns over China's slowing economic growth and expectations of a hard-landing in the region.
It also spooked markets in Asia, with the Nikkei 225 closing down 0.6% at 9,464.7 points, while Hong Kong's Hang Seng index weakened by 0.7% to end at 20,407.7.
US markets also close down overnight. The Dow Jones fell 0.56% to 12,921, while the S&P 500 edged down 0.05% to 1,369.
Meanwhile in Europe yesterday, markets managed to make some headway, but signs the crisis may be worsening were seen in Spain.
The yields on Spain's 10-year notes reached a four-month high, soaring to 6.08%, as worries over the sovereign's ability to pay its debts escalated ahead of a Spanish debt auction today.
In response, Spanish Prime Minister Mariano Rajoy said he was ready to intervene if the regions continued to bust their budgets and hamper the central government's austerity drive.
"The fundamental objective at the moment is to reduce the deficit. If we don't achieve this, the rest won't matter: we won't be able to fund our debt, we won't be able to meet our commitments," he said at a Madrid conference, according to Telegraph reports.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected