Benchmark US indices ended the day sharply lower with the NASDAQ dropping 3 per cent, as investors sold heavily in tech stocks.
The US Jobs data which showed that the US saw 151,000 jobs in January, was below analysts expectations of gains of 190,000. However, what spooked markets was that the unemployment rate, however, fell to 4.9 percent from 5.0 percent, while wages rose 0.5 percent.
The worry was that this may prompt the US Federal Reserve to raise interest rates once again in March, especially as there was decent rise in wages.
The tech heavy Nasdaq composite fell 3.25 percent, with Apple, Amazon and Facebook, seeing deep cuts in trade.
The dollar rallied following the US jobs data, while the treasurys fell on the report.