TORONTO — North American stock markets sold off sharply Monday as a disappointing read on American manufacturing added to worries over whether economic problems cropping up in emerging markets can be contained.

The S&P/TSX composite index gave up the last of its gains for the year as it tumbled 208.74 points, or 1.52 per cent, to 13,486.2. The Canadian dollar gained 0.33 of a cent to 90.11 cents US.

New York's Dow Jones industrial average plunged 326.05 points, or 2.1 per cent, to 15,372.8 as the Institute for Supply Management said its January manufacturing index dropped to 51.3 in January from 56.5 in December. Any reading above 50 signals expansion.

The Nasdaq fell 106.92 points to 3,996.96 while the S&P 500 index slid 40.7 points to 1,741.89.

Markets had already got off to a weak start Monday morning after China's official purchasing managers' index came in at 51.5, down from 52.5 in December.

The data added to concerns about emerging market countries such as Turkey, South Africa and India, all of which had to hike rates last week to support their currencies.

These countries and others have been hit by an outflow of investor funds as the U.S. Federal Reserve cuts back on its massive monthly bond purchases, a move that kept U.S. long-term rates low and resulted in a flow of cheap money into emerging markets.

The primary worry is that economic weakness from the emerging economy countries could affect growth in developed markets.

``Once you get into some kind of a modest disease, it has a tendency to spread,'' observed Fred Ketchen, manager of equity trading at ScotiaMcLeod.

``Not because there is any real reason why it should spread, but emotion takes it down and there is a lot of emotion in this market. People really don't know what to make of it.''

In Canada, Royal Bank's purchasing managers index also pointed to a weak start to 2014 for the Canadian manufacturing sector. The January index came in at 51.7, down from 53.5 in December.

There was other negative news from automakers as Ford shares slipped 2.75 per cent and General Motors shares 2.3 per cent after they reported a drop in U.S. January sales, hurt by harsh winter weather.

The sell-off hit all TSX sectors with the base metal group down 2.6 per cent as the latest round of economic weakness worries sent March copper down a cent to US$3.18 a pound after it fell about 2.25 per cent last week. HudBay Minerals fell 35 cents to C$8.49.

The energy sector was down 2.1 per cent as March crude in New York fell $1.06 to US$96.43. Suncor Energy, which was set to release earnings Monday night, lost 95 cents to C$35.64.

Insurers led the way to a 1.3 per cent slump in financials with Manulife Financial (TSX:MFC) down 93 cents to $19.62.

Tech stocks also racked up steep losses as electronics manufacturer Celestica (TSX:CLS) shed 81 cents to $10.24.

The gold sector lost early momentum and was down about 0.75 per cent as risk-averse investors pushed April gold up $20.10 to US$1,259.90 an ounce.

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  • Trois-Rivieres, Que. - $152,300

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Sherbrooke: $162,600

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • St. Catharines-Niagara: $164,400

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Windsor -- $172,200

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Thunder Bay -- $173,900

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Quebec City -- $175,500

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Saint John, N.B.: $177,300

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Sudbury: $182,400

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Winnipeg -- $183,200

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Oshawa: $186,400

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • London, Ont.: $189,000

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Halifax -- $190,500

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Victoria -- $196,000

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Montreal -- $205,100

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Regina -- $207,400

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Kitchener-Waterloo: $209,500

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Hamilton -- $215,800

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Ottawa-Gatineau -- $216,300

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Saskatoon -- $218,900

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Vancouver -- $224,800

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • St. John's -- $225,000

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Edmonton -- $250,000

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Toronto -- $275,600

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • Calgary -- $391,700

    Minimum income needed to be part of the city's top one per cent of earners. Source: StatsCan

  • ALSO ON HUFFPOST: Canada's Most, Least Equal Provinces

  • (MOST EQUAL) P.E.I.: 17.5%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: n/a Source: StatsCan

  • New Brunswick: 21.7%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 4.5% Source: StatsCan

  • Nova Scotia: 24.6%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 5.2% Source: StatsCan

  • Quebec: 25.9%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 7.5% Source: StatsCan

  • Manitoba: 26%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 6.3% Source: StatsCan

  • Newfoundland: 28%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 5.2% Source: StatsCan

  • Saskatchewan: 32.8%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 7.3% Source: StatsCan

  • British Columbia: 34.1%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 9.9% Source: StatsCan

  • Canada nationwide: 35%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 10.6% Source: StatsCan

  • Ontario: 38.2%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 12.1% Source: StatsCan

  • Alberta: 48.9%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 16.6% Source: StatsCan

  • The Territories: 49.7%

    Percentage of income going to the top 10 per cent of earners. Top one per cent's share: 4.8% Source: StatsCan Pictured: Iqaluit, Baffin Island, Nunavut

  • ALSO ON HUFFPOST: OECD COUNTRIES WITH THE WORST INCOME INEQUALITY

  • 10. Japan

    A poor Japanese man pushes a cart in downtown Tokyo on March 2, 2010. (YOSHIKAZU TSUNO/AFP/Getty Images)

  • 9. Greece

    A woman holds a cardboard reading in Greek 'I' m hungry' on March 17, 2011 in central Athens. (LOUISA GOULIAMAKI/AFP/GettyImages)

  • 8. Spain

    A man looks for food in garbage container on January 15, 2013 in Santa Cruz de Tenerife on the Spanish Canary Island of Tenerife. (DESIREE MARTIN/AFP/Getty Images)

  • 7. U.K.

    On the day that Britain officially enters a recession, a homeless man walks the streets on January 23, 2009 in Liverpool, United Kingdom. (Photo by Christopher Furlong/Getty Images)

  • 6. Portugal

    Hunter Halder walks toward his bicycle loaded with food that he collect in restaurants on October 21, 2011 in Lisbon. Every night, Hunter Halder, a 60 years old american leaving in Portugal, mounts his bike and toured the restaurants where he gets the food he distributes to the poor of Lisbon, hit hard by the severe economic crisis in Portugal. (PATRICIA DE MELO MOREIRA/AFP/Getty Images)

  • 5. Israel

    Thousands of Israelis gather to protest against the cost of living in Israel, in Jerusalem Saturday, Sept. 3, 2011. (AP Photo/Sebastian Scheiner)

  • 4. U.S.

    A man walks down the street collecting cans on October 20, 2011 in Reading, Pennsylvania. (Photo by Spencer Platt/Getty Images)

  • 3. Turkey

    Children play on the garbage heap in Hasankeyf a small poverty stricken town on the banks of the Tigris on April 10, 2010. (BULENT KILIC/AFP/Getty Images)

  • 2. Mexico

    A family inside their house made with carboard at the edge of a ravine in a poor zone of Mexico city , on July 24, 2012. (OMAR TORRES/AFP/GettyImages)

  • 1. Chile

    Photo: In this June 14, 2012 photo, a man leaves his home in a horse drawn cart to begin his work day of recycling trash in an area where families live in extreme poverty in the Puente Alto sector of Santiago, Chile. (AP Photo/Victor Ruiz Caballero)