The Australian share market has plunged 3.59 per cent, continuing panic selling that smashed global equities markets overnight.
The benchmark S&P/ASX200 index was 206.7 points lower at 5,553.9 at 10:15am on Tuesday.
The broader All Ordinaries index was down 208.8 points to 5,613.6 amid a sea of red.
The local stock market suffered its worst single day loss in nearly a dozen years on Monday.
The wider market shed about $155 billion in value as the S&P/ASX200 index plunged 7.33 per cent to a two-year low of 5,760.6.
'Black Monday'
Coronavirus fears and the steepest fall in oil prices since the 1991 Gulf War have sent markets around the world into a tailspin, prompting analysts to dub yesterday "Black Monday".
Major US indices fell more than seven per cent - with the Dow Jones finishing more than 2,000 points lower in its worst session since 2008 - following a 15-minute halt to trading early in the session triggered by a plunge.
European stock markets slumped dramatically, after a downturn in Asia, with indexes in London, Paris and Frankfurt falling by seven per cent or more.
The New York Stock Exchange on Monday. Source: Getty
Brazil's Sao Paulo exchange also suspended trading briefly, and plummeted more than 12 per cent.
"There's a lot of fear in the market and if the price of oil continues to move lower it's an indication that a global recession is not far away," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The CBOE Volatility index, a gauge of investor anxiety, touched its highest level since December 2008.
It comes as top oil exporter Saudi Arabia slashed the prices it charges customers following a bust-up with Russia over crude production cuts.
There have been more than 114,000 cases of coronavirus worldwide, resulting in at least 4,000 deaths.
Additional reporting: AFP
