The Australian share market has plunged 3.59 per cent, continuing panic selling that smashed global equities markets overnight.
The benchmark S&P/ASX200 index was 206.7 points lower at 5,553.9 at 10:15am on Tuesday.
The broader All Ordinaries index was down 208.8 points to 5,613.6 amid a sea of red.
The local stock market suffered its worst single day loss in nearly a dozen years on Monday.
The wider market shed about $155 billion in value as the S&P/ASX200 index plunged 7.33 per cent to a two-year low of 5,760.6.
Coronavirus fears and the steepest fall in oil prices since the 1991 Gulf War have sent markets around the world into a tailspin, prompting analysts to dub yesterday "Black Monday".
Major US indices fell more than seven per cent - with the Dow Jones finishing more than 2,000 points lower in its worst session since 2008 - following a 15-minute halt to trading early in the session triggered by a plunge.
The New York Stock Exchange on Monday. Source: Getty
European stock markets slumped dramatically, after a downturn in Asia, with indexes in London, Paris and Frankfurt falling by seven per cent or more.
Brazil's Sao Paulo exchange also suspended trading briefly, and plummeted more than 12 per cent.
"There's a lot of fear in the market and if the price of oil continues to move lower it's an indication that a global recession is not far away," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The CBOE Volatility index, a gauge of investor anxiety, touched its highest level since December 2008.
It comes as top oil exporter Saudi Arabia slashed the prices it charges customers following a bust-up with Russia over crude production cuts.
There have been more than 114,000 cases of coronavirus worldwide, resulting in at least 4,000 deaths.
Additional reporting: AFP