Selloff in U.S. and European markets spread to the region and material shares led losses.

The MSCI Asia Pacific Index retreated 1.4 percent to 122.96 as of 9:10 a.m. in Tokyo, on course to slide 16 percent this quarter. The Standard & Poor’s 500 Index slumped 2.6 percent on Monday amid a rout in commodity and biotechnology shares, while a gauge of global equities fell to a two-year low. Glencore Plc slumped 29 percent, dragging the Bloomberg World Mining Index to its lowest level in almost seven years.

Markets have been whipsawed as China’s economy falters despite stimulus efforts. A gauge of industrial profits fell the most in at least four years, a report showed on Monday, ahead of manufacturing data this week that should provide further clues on the health of Asia’s largest economy. The specter of higher interest rates in the U.S. is also weighing on sentiment, with Federal Reserve officials ramping up rhetoric in favor of a 2015 rate increase.

Source : Bloomberg