Australian stocks are set to dive again after fears about the spread of the coronavirus sparked a major sell off on global markets overnight.

The SPI200 futures contract was down 138 points, or 1.99 per cent, at 6,791 at 0700 AEDT on Tuesday, pointing to big falls when the local market opens.

The Australian securities exchange suffered losses across the board on Monday, with $60 billion in value wiped out in its worst day in six months.

Fears about the extent of the spread of the Corona Virus in South Korea, into Europe and numerous other countries, then drove a major fallout in markets overnight.

The Australian dollar was buying 65.99 US cents at 0700 AEDT on Tuesday, up from 65.97 US cents as the local share market closed on Monday.