The Toronto stock market plunged more than 200 points Friday as emerging market worries persuaded investors to avoid riskier assets like equities and commodities.
The S&P/TSX composite index dropped 215.18 points to 13,717.79 in a broad-based sell-off.
The Canadian dollar was ahead 0.21 of a cent to 90.31 cents (U.S.) as Statistics Canada said the annual inflation rate rose to 1.2 per cent in December, compared with 0.9 per cent in November, largely because of higher gasoline prices.
Losses were even steeper in New York where the Dow Jones industrials racked up a sizable triple-digit loss for a second day, falling 318.24 points to 15,879.11 after plunging 176 points on Thursday. The Nasdaq was 90.7 points lower to 4,128.17 while the S&P 500 index was down 38.17 points to 1,790.29.
The rout in emerging market assets began a day earlier following signs that manufacturing was contracting in China, a major driver of global economic growth.