LONDON - Britain's leading share index closed 2.45 percent lower, with market sentiment hit by data showing US employers cut more jobs than expected in June and unemployment in Europe hit a 10-year high.
The FTSE 100 index ended down 106.44 points at 4,234.27.
@MARKET ROUNDUP:EUROFIRST
EUROPE - European shares closed lower after US employers cut far more jobs than expected, casting further doubt on the strength of economic recovery.
The pan-European FTSEurofirst 300 index fell 2.6 percent to close at 843 points, the day's low.
@MARKET ROUNDUP:EUROmarkets
FRANKFURT - The DAX index ended at 4,718.49 points, down 186.95 or 3.81 percent.
PARIS - The CAC-40 index closed at 3,116.41 points, down 100.59 or 3.13 percent.
ZURICH - The Swiss market index closed at 5,355.23 points, down 117.71 or 2.15 percent.
MILAN - The FT IT All Share index closed at 19,678.7 points, down 486.51 or 2.41 percent.
@MARKET ROUNDUP:nikkei
TOKYO - Japan's Nikkei average fell 0.6 percent, dented by a fall in blue-chip shares as caution set in ahead of U.S. jobs data, but Hitachi jumped on a report it will boost production of lithium ion batteries for hybrid cars.
The Nikkei closed down 63.78 points at 9,876.15.
@MARKET ROUNDUP:hang seng
HONG KONG - Hong Kong shares dropped on their first trading day of the third quarter, shedding early gains as the mood in the market swung from optimism over upbeat manufacturing data to caution ahead of key US jobs data.
The Hang Seng Index finished down 200.68 points at 18,178.05 after starting the day at 18,780.96.
@MARKET ROUNDUP:asx
SYDNEY - Australian shares rose 0.1 percent, led by BHP Billiton, but pared back earlier gains as caution set in ahead of key earnings and economic news, starting with the latest US payrolls report.
The S&P/ASX 200 index rose 3.3 points to 3,877.3, after having climbed as high as 3,910.2 in early trade.
@MARKET ROUNDUP:south africa
JOHANNESBURG - South Africa's rand fell sharply against the dollar as investors' appetite for risk waned on worries that the global economy will remain weak for some time, while stocks fell on lower commodity prices.
The All-share index closed at 22,185.47 points, down 524.69 or 2.31 percent. The All Gold index closed at 2,285.32 points, down 87.18 or 3.67 percent, while the Industrial index closed at 17,482.96 points, down 153.3 or 0.87 percent.