Wall Street fell as much as 3 percent, the worst losses in nine months with the Dow briefly dipping below the significant 10,000 mark.
Financial, commodity and materials sectors were all hit hard by the selling, which was prompted by fears of escalating government debt problems in Portugal and Spain, adding to the pressure on the euro zone.
An unexpected rise in unemployment benefits also spooked Wall St, heightening concerns ahead of the non-farm payrolls data due later on Friday.
British and European shares shed more than 2.2 percent, with banks and miners bearing the brunt of the selling.
Japan's Nikkei average is seen weaker, with Nikkei futures trading in Chicago 285 points lower than the Osaka close.
The yen was the main beneficiary out of a flight to safer assets, hitting a seven-week high against the dollar, while the euro slumped across the board.
Australian shares are also seen sliding, with share index futures at 4,458, a 163.6 point discount to the underlying index's close on Thursday, with mining and energy firms set to be pressured.
HEADLINES: > Cuomo charges BofA, ex-CEO with fraud; SEC settles > Markets hammer euro states as fiscal fears mount > ADRs tumble on sovereign debt fears, Toyota > US begins probe of Prius as Toyota woes mount > Dow dips below 10,000 on eurozone debt, jobs data > S&P strips Berkshire Hathaway of AAA rating > Cost to insure U.S. Treasuries highest since April > U.S. jobless claims rise, productivity stays high > Oil plunges 5 percent on renewed economic fear > US sees China moving on currency despite rhetoric > Hoenig says Fed must eventually raise rates > U.S. Jan retail sales beat but momentum could fade
KEY INDEXES pct change
Bank of New York Asia ADR index -3.92
Dow Jones Industrial Average -2.61
Nasdaq Composite Index -2.99
MSCI Asia Pacific ex-Japan -1.42
Nikkei futures in Chicago 10,065
Nikkei futures in Osaka 10,350
TOP ASIA EVENTS:
For more Asian company earnings, see
JAPAN - Suzuki Motor Corp Q3 results
- Mazda Motor Corp Q3 results
- Panasonic Corp Q3 results
AUSTRALIA - Reserve Bank of Australia statement on monetary
policy
- Harvey Norman Q2 sales figures
TAIWAN - Asustek Q4 earnings investor conference
HONG KONG - China SCE Property Holdings Ltd trading
debut
(Reporting by Adrian Bathgate)
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