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At one point, the price of iron ore in Singapore fell by more than 11%.
Australian stocks opened lower, with the S&P/ASX 200 index falling 2.3 per cent to 7237.40, dragged down by declines in mining and bank stocks. The index is now at its lowest level since July 20. The utilities sector is the only rising sector.
Kyle Rodda, a market analyst at IG Markets, said in a report: "given the impact on global growth andThe large miners on the Australian Stock Exchange remain at a disadvantage because of widespread financial concerns. "
Iron ore prices continued their decline after falling below $100 a tonne, plunging about 60 per cent since setting a record in May.
Shares in power company AusNet Services rose 22% to an all-time high after Brookfield offered $7 billion to buy the company.
Mining stocks fell sharply, with Champion Steel (Champion Iron) and Lynas among the worst performers. Champion Steel is down 14.3%, Lynas is down 11.8%, and Orocobre is down 8.7%.
New Zealand's S & P / NZX 50 index fell 0.7 per cent to 13141.50.