Three more people have died in the coronavirus outbreak in Northern Italy, raising the death toll to 10.
It came as Croatia and Austria confirmed their first cases of the Covid-19 strain.
Meanwhile, a Tenerife resort hotel has been put on lockdown after an Italian doctor who stayed there tested positive for coronavirus.
Schools in the UK also closed as a precuation after pupils returned from half-term trips to Italy.
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Kuwait, Bahrain and Iraq on Monday recorded their first new coronavirus cases, all people who had been in Iran, which raised its toll from the disease to 12 dead and 61 infected.
Iraq announced its first case, an Iranian theology student in the holy city of Najaf, who had entered the country before the government banned the entry of non-Iraqis coming from Iran.
There are reports that the death toll in Iran is closer to 50.
A fifth person has died in the coronavirus outbreak in northern Italy.
London-listed stocks fell 3 per cent on Monday, wiping $50 billion (£38.7 billion) off companies' market value, as a surge in coronavirus cases outside China sparked fears of a pandemic, driving investors to the perceived safety of gold.
The FTSE 100 fell to an over two-month low, tracking declines across Asia and Europe, as sharp rises in new cases in Iran, Italy and South Korea raised concerns about a bigger hit to the world economy than previously feared.
Losses in Britain were broad based, with miners shedding over 4 per cent and on course for their worst day in 18 months. Easyjet Plc and British Airways-owner IAG led the wider travel and leisure sector down 4.3 per cent.
"The fear is that we could be looking at a scenario where the virus spreads aggressively in this part of the world too," said David Madden, analyst at CMC Markets in London.
"So traders have the perfect excuse to take profits and get out of stocks because it wasn't that long ago that they were at fairly lofty levels."
European Union health commissioner Stella Kyriakides said possible travel restrictions in the Schengen border-free area should be proportionate and coordinated among EU states, as the bloc faces a coronavirus outbreak in Italy.
"For the moment WHO has not advised imposing restrictions on either travel or trade," Kyriakides told reporters on Monday, adding that a mission of the World Health Organization will go to Italy on Tuesday to assess the situation.
A staggering 50 people have died in the Iranian city of Qom from the new coronavirus this month, Iran's semiofficial ILNA news agency reported on Monday.
The new death toll is significantly higher than the latest number of confirmed cases of infections that Iranian officials had reported just a few hours earlier by and which stood at just 12 deaths out of 47 cases, according to state TV.
An official from Qom, Ahmad Amiriabadi Farahani, was quoted in ILNA saying that more than 250 people are in quarantined in the city, which is a popular place of religious study for Shiites from across Iran and other countries.
A passenger reportedly requested to be let off a flight from London Heathrow to Milan this morning over coronavirus fears.
A British Airways spokesman said: "As with all our customers, we will always respect their wishes if they change their mind about flying at the last minute.
"The flight left within a few minutes of its scheduled departure time."
Janez Lenarčič, the EU Commissioner, says the coronavirus outbreak will impact the bloc's economy.
It comes as the World Health Organization announced they would be sending a mission to northern Italy due to a jump in cases there.
Primark owner AB Foods is talking to existing suppliers in Bangladesh, Cambodia, Vietnam, Turkey and Eastern Europe regarding a possible step up in production if clothing supplies from China are threatened by coronvirus, its finance chief said.
John Bason told Reuters on Monday that Primark currently has enough stock to take it through to the summer months.
He said Primark imports "mid forties percent" of its total clothing supplies from China.
The World Health Organization (WHO) no longer has a process for declaring a pandemic, but the COVID-19 coronavirus outbreak remains an international emergency, a spokesman said on Monday.
Fears of a coronavirus pandemic grew on Monday after sharp rises in new cases reported in Iran, Italy and South Korea, although China relaxed restrictions on movement in several places including Beijing as its rates of new infections eased.
Iranian state TV says the death toll in the country from the new coronavirus has risen to 12, after four more people died.
The TV quoted lawmaker Asadollah Abbasi as saying on Monday that the total number of confirmed cases stands at 47, including the deaths.