European stocks finished with their biggest drop in two months Monday, with airlines and other leisure shares taking a hit after the Trump administration suspended entry by citizens of seven Muslim-majority countries into the U.S.

U.S. stocks posted their biggest decline for 2017 as investors fretted over the negative implications of President Donald Trump's decision to temporarily halt immigrants from certain countries with large numbers of Muslims. There are also concerns that the fast pace of executive orders from the new president could sow more confusion and uncertainty in the market going forward.

The Asia-Pacific markets that were open for business during the Lunar New Year holiday extended their declines Tuesday, tracking moves overnight in the U.S., as investor risk aversion around President Donald Trump's immigration policy kicked in. The losses marked a turn from the gains racked up in global equity markets last week, when the Dow Jones Industrial Average crossed the 20,000 point line for the first time ever; the Nikkei also reached multiweek highs.