The benchmark Shanghai Composite Index fell over 8 per cent logging its worst single day fall since August 2015. The index showed slight recovery as China's central bank said it will induce 1.2 trillion yuan of liquidity into the markets.
Other Asian markets though did not mirror the sharp decline in the Chinese markets. The Indian benchmark, Sensex traded marginally in the green. The Japanese Nikkei was down over 1 per cent.
Chinese health authorities on Monday said that the death toll in the country due to the deadly novel coronavirus has increased to 361, with 17,205 infected cases.
Its National Health Commission said that it received reports of 2,829 new confirmed cases and 57 deaths on Sunday from 31 provincial-level regions and the Xinjiang Production and Construction Corps, reports Xinhua news agency.
Meanwhile, Indian authorities confirmed that a third person from Kerala Kasaragod tests positive.
"Overall from an equity market perspective, we believe the budget has been a non-event and belied the lofty expectations. Incrementally, it puts the hopes of a sharp corporate earnings recovery at risk," said Motilal Oswal report said.
The brokerage firm added the equity markets reacted with a 2.5 per cent correction in Nifty on Saturday. We believe once the fine-print is absorbed, the market's focus should revert to fundamentals, corporate earnings growth, global cues around the spread of Coronavirus and its potential impact on global growth.
( With inputs from IANS )