The stock market in Australia opened on Monday lower after the Wall Street fall on Friday injects fear in stock investors.

Smart rally in capital goods, banks and realty counters helped the Indian benchmark Sensex to extend its overnight gains by 224 points at 10:30 hours.

The Bombay Stock Exchange benchmark Sensex today plummeted by 523 points, its biggest loss in the last two weeks with software and metal stocks falling on reports of contraction in US service industry.

Finance Minister of India P Chidambaram has said that a weakness in Indian stock market was a reflection of global developments, and the domestic economy continues to be strong.

Gold prices fell Tuesday as investors sold the commodity to cover losses on global stock markets.

European stock markets appear to have rallied after the severe losses recorded when they opened this morning. Following news of continued falls on the Asian markets, Amsterdam's AEX lost five percent soon after opening.

The Australian share market is in a tailspin amid fears that Asia has been caught up in the United States economy's slowdown.

Asian shares started the week on a fairly gloomy note on Monday after a fall in US markets on Friday. Another reason for the decline was a lowering of the growth forecasts for the region by a major broker.

Last week, the Hong Kong market fell sharply. The subprime crisis led a US recession. Weakness in the American markets dragged down the Hong Kong market.

The benchmark Sensex on Monday tumbled by 769 points on fears foreign investment will slow down in the wake of rising inflation in the US that will limit interest rate cuts.

Asian and Pacific markets traded higher with a confidence after the announcement of the government of United States that plans to limit subprime related losses.

Tracking firm global trend, the Bombay Stock Exchange benchmark Sensex opened 247 points higher in early trade on emergence of buying by funds in heavy-weight stocks.