European stocks dropped on Thursday, taking their cues from a selloff on Wall Street as well as a plunge in oil prices that weighed on shares of the region's major energy companies.

The S&P 500 and the Dow extended their decline to close in correction territory Thursday after stocks went into a free fall late in the session on concerns about mounting volatility and worries about inflation and rising bond yields.

Asian shares took a tumble on Friday, taking cues from U.S. indexes which extended sharp losses in the last session. Japan's Nikkei 225 fell 2.51 percent, with losses seen in most sectors. Automakers, financials, manufacturers and technology stocks traded firmly in negative territory.