Asian stock markets started Monday's trade with a steep fall in oil prices.

In Japan, the benchmark Nikki 225 index crashed 6.1%, while in Australia, the ASX 200 dropped nearly 6% in early trade.

Markets have been clouded by the threat of a price war between oil exporting group OPEC and its main ally Russia.

Asian investors also reacted to the decline in Chinese export figures released over the weekend.

Global markets are witnessing heightened volatility in anticipation of a significant economic hit from coronavirus.

After oil prices rose more than 20% on Monday, energy firms have seen some of the most significant share prices fall.

The share price of the Australia-listed oil discovery was down 31%, while energy firm Santos dropped its shares by more than a quarter in value (27%).

Oil and other commodity companies make up a large share of the Australian stock market.

In China, its benchmark Shanghai Composite fell nearly 2%, while in Hong Kong, the Hang Seng index fell 3.7% in early Monday trading.

"China will make own contribution to the clouds looming over the markets from Monday," said Jeffrey Haley, senior market broker Kanda.

On Saturday, China released import and export figures for the first two months of the year. Exports declined by 17.2% while imports declined by 4%. It gave the Chinese economy a $ 7.1 billion trade deficit as it grappled with the economic impact of the coronavirus outbreak.

"China may gradually return to work, but manufacturers will now face an international decline in demand, with coronaviruses now well established outside Chinese shores," Mr Haley said.

In Japan, market sentiment was also affected by GDP figures which showed a decline in the economic growth of 7.1% in the fourth quarter of 2019.