Labour Day offered the New Zealand sharemarket a day's reprieve from the pain suffered by overseas markets -- worried about a global economic slowdown and shrinking corporate profits.
But the malaise for New Zealand brokers returned this morning. The NZX-50 index opened at 2778.546 after the long weekend and immediately headed south to drop 35.863 points, or 1.29 percent, in the opening minutes of trading.
Renewed global recession fears have sparked fresh market jitters around the world at the beginning of the week.
In Australia yesterday the share market closed at a fresh four-year low after falling just over 1.5 percent.
At close the benchmark S&P/ASX200 index was down 60.2 points, or 1.56 percent, at 3809.2, while the broader All Ordinaries index had lost 63.3 points, or 1.65 percent, at 3768.3.
In New York this morning Wall Street ended with big last-minute losses.
The Dow Jones industrial average fell 203 points, or 2.42 percent, to 8175.77 after earlier rising 220 points.
In Europe shares fell to a 5-1/2 year closing low on Monday, weighed down by fears of an economic downturn.
The benchmark FTSEurofirst 300 index of top European shares closed down 1.65 percent at 816.04 points, the lowest close since May 2003.
The early falls in Europe trailed a rout on Asian markets, where panicky investors bailed out of stocks despite a fresh pledge from the Group of Seven nations to take steps to stabilise the world financial system.
Japanese stocks tumbled to 26-year closing lows on Monday, and most other Asian markets fell heavily in chaotic trade as investors feared a flurry of central bank moves would not be enough to stave off a global recession.
Japan's key stock index plunged more than 6 percent as investors grew increasingly gloomy about the outlook for the world's No 2 economy.
The Nikkei 225 index shed 486.18 points, or 6.36 percent, to 7162.90 -- its lowest closing level since October 1982. The benchmark has lost more than 20 percent since last Monday and nearly 40 percent in the last month.
Thai trading was temporarily halted after the benchmark index tumbled 10 percent, triggering an automatic 30-minute break. The Stock Exchange of Thailand index was at 389.58 points when trading was suspended. It ended up closing the day down 45.4 points, or 10.5 percent, at 387.43.
Hong Kong's main stock index plunged more than 12 percent, closing at its lowest point in more than four years.
The blue-chip Hang Seng Index tumbled 1602.54 points, or 12.7 percent, to 11,015.84. The benchmark is off more than 50 percent this year.
China's key stock index slumped to its lowest level in more than two years, as investors reacted to dismal earnings reports and selloffs in overseas markets. The benchmark Shanghai Composite Index lost 6.3 percent, or 116.27 points, to 1723.35.
Only South Korea's market managed to eke out gains, perhaps in part because of a big rate cut there. The benchmark Kospi ended 0.8 percent higher at 946.45.
