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Stock markets in Asia have been hit by a sharp selloff on Wall Street hit leading companies including Apple, Goldman Sachs and General Electric.
With Monday's losses, all three major Wall Street scholarships erased the gains from their brief rally after the US congressional elections on 6 November.
President Donald Trump blamed his defeat in the midterms for the fall, claiming fears of "Harassment by the Dems" was causing "big headaches!"
Donald J. Trump
(@RealDonaldTrump)The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!
Shares in Asia Pacific followed in the morning with the Nikkei diving 2.2% in Tokyo and the market in Seoul down 0.84%. Shares in Hong Kong were also down 1.5% in early trade and Shanghai was off 0.5% before both recovered.
Australia's beleaguered banks led the ASX200 benchmark down by 1.7%. The Australian dollar also took a step forward in the climate change program.
Asian stocks excluding Japan have fallen nearly 17% this year, after a 33.5% gain in 2017, with October 2018 the worst month since mid-2015.
"A fair number of factors are weighing on the market in the US," said Yoshinori Shigemi, global market strategist at JP Morgan Asset Management in Tokyo.
The falls on Wall Street is coming back to life. Apple shares fell 5% after several suppliers to the company, including Lumentum Holdings, whose components power the iPhone's Face Technology ID, cut their forecasts. Apple's decline impeded the tech-heavy Nasdaq, which fell more than 2%.
Lumentum shares plunged 33%. Shares of several chipmakers that sell to Apple, such as Cirrus Logic, Qorvo Inc and Skyworks Solutions, dropped as well. The Philadelphia SE Semiconductor index dropped 4.4%. Apple suppliers in Asia fell sharply on Tuesday with Taiwan-based assembler Foxconn more than 3% and rival Pegatron off more than 5%.
"The concerns are all about global economic growth, specifically demand for the likes of Apple," said Kate Warne, investment strategist at Edward Jones in St. Louis. "Investors are becoming more involved in the growth and growth of this sector."
On Wall Street, Goldman Sachs shares dropped 7.5% after Bloomberg reported that Malaysian finance minister Lim Guan Eng said the country was seeking a full refund of the Wall Street bank 1MDB. Goldman Sachs was the biggest drag on the Dow, which fell more than 2%.
Energy stocks also accelerated their decline towards the end of the fellowship.
General Electric Co shares fell 6.9% Larry Culp said the company was going to be in a position to reduce leverage. The shares dropped below $ 8 for the first time since March 2009.
"At the moment," said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois.
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