Despite the magnitude of Monday's decline, few traders saw panic in the market.
The comments came as the benchmark Nikkei 225 index dipped 7.1 percent in Tuesday afternoon trading, before recovering slightly. The tech-heavy Nasdaq is the only major index on the plus side of the margin with 1 percent for the year.
Shares are tumbling in Asia after a wild day for USA markets that resulted in the biggest drop in the Dow Jones industrial average in six and a half years.
"I look at the broader factors that are driving this sell-off, and it's really the pick-up in interest rates that seems to be at the heart of the anxiety in the marketplace", said Craig Fehr, a Canadian markets strategist at Edward Jones in St. Louis.
A 10 percent drop from a peak is often referred to as a "correction" while a bear market is generally defined as a 20 percent or so drop in indexes.
Fowler says people have forgotten what it's like for a market to go down. "This is fear rolling over itself", she said. But even before Friday's news, other financial indicators were moving in ways that suggested the end could be in sight to a prolonged period of eerily calm, happy markets. That is painful for Japanese and other regional export manufacturers, whose competitiveness is hurt by stronger currencies that push their prices relatively higher. The euro was up 0.4 per cent at $1.2415 while the dollar rose 0.1 per cent to 109.22 yen.
Around half of that loss was recouped within minutes, but its gains for the year were still gone as of late afternoon.
In U.S. trading, banks fared the worst as bond yields and interest rates nosedived.
As US President Donald Trump lauded a "tidal wave of good news" about the economy at a speech in OH on Tuesday (NZ time) the Dow Jones Industrial Average began to nosedive. On Monday, it gave up $1.30 to $64.15 per barrel. Health care, technology and industrial companies all took outsize losses and energy companies sank with oil prices.
The Dow Jones plummeted by 1,150 points on Monday - its largest single-day point drop - erasing all of its gains for the year.
The Standard & Poor's 500 index lost 85 points, or 3.1 percent, to 2,676, on track for its biggest loss since June 2016. Falls like this have not been registered since August 2011 when investors were fretting over Europe's debt crisis and the debt ceiling impasse in Washington that prompted a US credit rating downgrade.
Japan's benchmark Nikkei 225 index was almost 5 per cent down at the close last night and Australia's ASX200 suffered a 3.3 percent fall.
The pan-European FTSEurofirst 300 index lost 1.51 percent and MSCI's gauge of stocks across the globe shed 2.96 percent.
Many investors have been bracing fora backdraft for months, as the stock market has reached record high after record high with investors encouraged by solid economic data and prospects of corporate profits, the latter bolstered by recently passed tax cuts.
'When you have rates moving upwards, typically what happens is that financial conditions tighten, things like bank lending, mortgage lending start to slow and then the economy is at risk of a potential downturn, ' said Mona Mahajan, investment strategist with Allianz Global Investors in NY.
In one sign of a shift underway, a measure of expected market turbulence, the CBOE Volatility Index, jumped by more than 15 percent Friday.
Bond yields remained higher with the 10-Year Treasury hovering at 2.84%.
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