European stocks posted their worst daily drop in nearly eight years Friday, after investors dumped risk assets following the U.K.'s historic referendum that left the country on course to leave the European Union.

The Stoxx Europe 600 SXXP, -7.03% tumbled 7% to 321.98, marking its worst session since October 2008 in fallout of Lehman Brothers bankruptcy, according to FactSet data. The stock gauge had been on pace for its largest daily drop since October 1987, but pared losses.

In London, the FTSE 100 UKX, -3.15% slid 3.2% to 6,138.69, bouncing back from steeper early losses.

U.S. stocks plunged Friday, posting largest drops in 10 months after U.K. citizens voted to end the country's membership in the European Union. The main indexes ended with weekly losses for a third straight week.

The S&P 500 SPX, -3.59% plummeted 75.92 points, or 3.6%, to 2,037.40, its largest one-day percentage decline since Aug 24, 2015. For the week, the benchmark index lost 1.6%, the largest one-week drop since February.

The Dow Jones Industrial Average DJIA, -3.39% suffered its largest one-day drop in 10 months, plunging 611.21 points, or 3.4%, to 17,399.86. The blue-chip index lost 1.6% over the week.

Meanwhile, the Nasdaq Composite COMP, -4.12% was hit the hardest, as investors dumped technology and biotech stocks. The index lost 202.06 points, or 4.1%, to 4,707.98 and declined 1.9% over the week.

Asian stocks fell and the British pound tumbled more than 2 percent on Monday as markets struggled to shake off deep uncertainty sparked by Britain's decision to leave the European Union.

Sentiment remained weak even though the worst of the turmoil seen on Friday, when global stock markets suffered their biggest decline in nearly five years, had eased.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shrank losses to 0.6% as companies with UK exposure in particular came under more pressure.

Financials led declines in Australia and Hong Kong with the sector seen the among worst hit by Brexit and the prospect of London losing its prized "EU passport".

June 27 Japan's Nikkei share average rebounded on Monday as government officials stepped up warnings that they may intervene in currency markets to stabilise the yen after Britain voted to leave the European Union.

Prime Minister Shinzo Abe said on Monday he has instructed Finance Minister Taro Aso to watch currency markets "ever more closely" and take steps if necessary.

Abe summoned Aso and Bank of Japan Deputy Governor Hiroshi Nakaso to discuss how to deal with the market turbulence caused by Brexit.