A county in northern China is offering 1,000 yuan ($145) to tipsters who report the presence of anyone from Wuhan, epicentre of the coronavirus outbreak, who has not already registered with authorities, the local government TV station said on Monday.
The S&P energy index .SPNY dropped 2.76% as crude prices settled down about 2% on fears the outbreak would dent demand.
"How long and how deep the correction lower will last, depends both on the success of China's efforts to control the viral spread, and the prevalence of its occurrence internationally", Jeffrey Halley of Oanda said in a commentary.
Markets in Hong Kong and mainland China were closed Tuesday for Lunar New Year holidays, while South Korea's benchmark tumbled 3.4% to 2,170.88 as it reopened after its own holidays. Gold prices rose as did bonds as investors headed for safer holdings. The Nasdaq lost 175.60 points, or 1.9%, to 9,139.31.
No.1 US homebuilder D.R. Horton Inc rose 2.7% after raising the upper end of its forecast for full-year home sales.
The benchmark S&P 500 suffered its worst weekly performance since September last week as China locked down several cities and curbed travel, reminding investors of the deadly SARS virus that killed almost 800 people in 2002-03 and cost the global economy billions.
U.S. President Donald Trump on Monday said the United States was offering to help China in combating the spread of a virus that has sparked fears of global contagion.
In mid-afternoon trade in Europe, London was down some 2.2 percent, with Paris and Frankfurt doing even worse with losses of some 2.6 percent each.
Wynn Resorts Ltd, Melco Resorts & Entertainment Ltd and Las Vegas Sands Corp, which have large operations in China, plunged at least 5%.
While the main focus is on the spread of the virus, traders will also be keeping an eye on the release of earnings this week from top companies including Apple, Facebook and Samsung.
American Airlines fell 6.5% and Delta slipped 4.2% as part of a broad slide for airlines because of concerns global travel will decline amid the virus' spread. India's Sensex lost one per cent to 41,204.15, while the benchmark in Thailand dropped 3.1 per cent. Indonesia's share benchmark was 1.8 per cent lower.
Fourth-quarter earnings season will kick into high gear this week with 141 of the S&P 500 companies expected to report this week including Apple, Microsoft Corp and Boeing Co.
Benchmark US crude gave up $1.71 (NZD$2.61) to $52.48 (NZD$80.08) per barrel in electronic trading on the New York Mercantile Exchange. The euro weakened to $1.1020 from $1.1029.