Stocks, oil and cryptocurrencies have fallen overnight in the US. The situation in Ukraine and worries ahead of a US Federal Reserve announcement later this week is being blamed.
The S&P 500 fell 2.4 percent in morning trading.
The technology-focused Nasdaq Composite lost 2.7 percent and The Dow Jones Industrial Average dropped 1.7 percent, in what is a seventh consecutive day of losses.
Russian stocks and bonds also took a hit, down more than 5 percent.
The sell off came as the UK ordered some of its embassy staff to leave Ukraine, a day after the US ordered family members of its embassy staff to leave Kiev because of the risk that Russia would take "significant military action.
Financial Times reporter Peter Wells spoke to Corin Dann.
The New Zealand sharemarket clawed back some of its early trading losses, at the end of trade yesterday.
The top 50 index fell more than 2 percent during early trading - the biggest single session decline since late January last year.
But it has recovered throughout the afternoon to end the day down 1.25 percent.
