By midday Japan's Nikkei 225 stock average dropped by 5.6 per cent after three days of gain.
All other Asian stock markets were down as well. Seoul extended its lost to 8.16 per cent; Singapore, Taipei and Hong Kong were down by 2 per cent; and Shanghai, 1.2 per cent.
Such results came after Wall Street shares fell again (- 2 per cent), but especially after US companies released negative third quarter earnings, suggesting a bleak outlook for future business plans.
According to Briefing.com, out of 49 companies 45 per cent have had negative results, 30 per cent achieved their goals, 21 per cent had lower than expected results and only 3 per cent have had positive results.
Declining sales in the US market is also taking its toll on the Japanese economy. For the first time in ten years, Toyota is expecting fewer sales.
China too is feeling the pinch as a result of lower US demand.
As Washington gets ready for more plans to jumpstart its economy, countries in the European Union struggle to come up with measures to re-launch their fragile economies.