Shares across most of the Asian markets closed deep in the red while European bourses were in the negative territory in early trading hours.
The investor sentiment seemed to be further dampened by concerns that China could resort to a tight monetary policy, after seeing robust economic growth in the December quarter.
Obama yesterday pitched for new restrictions on the size and scope of financial entities to limit their increased risk-taking ways. The move sent US shares into a tailspin.
Japanese benchmark Nikkei 225 shed over points or 2.56 per cent to end the day at 10,590.55 points.
South Korea's key Kospi index tumbled 2.19 per cent to 1,684.35 points.
Moreover, Singaporean and Indian markets declined over one per cent. While Straits Times Index declined to 2,819.71 points, Sensex shed 191 points to 16,859.68 points.
China's key Shanghai SE Composite IX slumped nearly three per cent to 3,128.59 points, a day after the nation announced that its GDP grew 10.7 per cent in last three months of 2009.
European shares began on a shaky note in morning trade. Key indices including UK's FTSE 100, slipped marginally.
US stocks yesterday took a beating, with the Dow Jones Industrial Average plunging two per cent to 10,389.88 points. The tech-heavy Nasdaq Composite and the broader S&P 500 indices fell more than one per cent.