US President Donald Trump over the weekend pledged "severe punishment" if the US concludes that Saudi agents killed Khashoggi, and said there would be "very powerful" repercussions. The index recovered some ground later to close 3.5% down.
In a sign Saudi King Salman bin Abdel-Aziz may seek a diplomatic solution to the incident, the monarch stressed the strength of Saudi-Turkish ties in a telephone call with President Recep Tayyip Erdogan of Turkey, the SPA said late Sunday.
A pro-government Turkish daily published preliminary evidence last week from investigators it said identified a 15-member Saudi intelligence team which arrived in Istanbul on diplomatic passports hours before Khashoggi disappeared on October 2. The losses wiped out all the market's gains in 2018, although it is still up 8% from a year ago. This comes after UK, German and French foreign ministers issued a joint statement, calling to identify and punish those responsible for the suspected killing of the Saudi government critic. Turkey said Khashoggi was killed in the Saudi consulate in Istanbul, while Saudi Arabia said the journalist left unharmed.
Media companies and some technology executives have pulled out of a major Saudi investment conference dubbed "Davos in the Desert", scheduled for next week in Riyadh, because of growing outrage over the disappearance.
The Washington Post, to which Khashoggi contributed as a columnist, has said the Turkish government had told United States officials it had audio and video recordings showing how Khashoggi was "interrogated, tortured and then murdered" by a 15-member Saudi security team inside the consulate before his body was dismembered.
The source said it would be a joint search with the Saudi authorities.
Khashoggi's fiancée Hatice Cengiz revealed how the couple spent their last hours together, writing that "tyrants eventually pay for their sins", in a New York Times article on Saturday.
Trump vows 'severe punishment' if Saudi killed missing journalist
A representative from Apple, however, confirmed the watches do not have fingerprint entry features, CNN reported on Saturday. Khashoggi, a prominent critic of Riyadh and a U.S. resident, disappeared on October 2 after visiting the Saudi consulate.
However, he told CBS News on Saturday that the U.S. was investigating the case which he called "really bad and disgusting" and that "there will be severe punishment".
Cengiz, a doctoral student at a university in Istanbul, wrote: "If the allegations are true, and Jamal has been murdered by the errand boys of Mohammed bin Salman, he is already a martyr".
"I had planned a party, inviting his closest friends to surround him with the love and warmth that he had missed", she wrote.
The White House's comments in this regard so far have been limited.
Saudi Arabia appears to be increasingly cornered.
Jamal reportedly went to the Saudi Consulate located in one of Istanbul's upscale neighbourhood on September 28 to get documents to marry his Turkish fiancee Hatice Cengiz.