Asian stocks fell for a second consecutive session on Tuesday following heavy losses in the U.S. and European markets overnight. Slumping oil prices and growing concerns that Greece might leave the European currency union left investors fleeing risky assets for the presumed safety of government bonds and the safe-haven Japanese yen.
Chinese stocks ended little changed with a positive bias following a Bloomberg report that the government plans to fast track about $US1 trillion in spending to support the economy. The benchmark Shanghai Composite index fell about a percent from a more than five-year high before reversing direction to end up 0.03 percent at 3,351.45. Hong Kong's Hang Seng index, meanwhile, dropped 0.99 percent to finish at 23,485, 41.
Growth in China's services sector picked up slightly in December, expanding for the eighth straight month, a survey showed today. The HSBC China services purchasing managers index rose to 53.4 from 53.0 in November. The composite index climbed to 51.4 from 51.1 in November, an encouraging sign of strength amid weakness in manufacturing and property sectors.
Japanese shares led the selloff across Asia as investors worried about tumbling oil prices and the future of Greece in the euro zone. The benchmark Nikkei average tumbled 525 points or 3.02 percent to post its biggest drop in nearly 10 months, with exporter shares coming under selling pressure as the yen strengthened for a second day on increased risk aversion.
Honda Motor, Nikon, Canon, Fanuc, Toyota Motor, Panasonic and Mazda Motor fell 2-5 percent. Oil explorer Inpex Corp slumped 5.8 percent, construction machinery maker Hitachi Construction Machinery Co fell 5.7 percent, retailer J Front Retailing tumbled 5 percent and chip maker Tokyo Electron lost 4.8 percent.
Sony Corp shares dropped 1.2 percent. The company said sales of its PlayStation4 video game consoles exceeded 18.5 million units worldwide as of January 4, 2015. Carrier Japan Airlines closed on a flat note on expectations it will save money on jet fuel.
In economic news, the business activity index in Japan grew at a faster pace in December, a survey from Markit Economics revealed, with a PMI score of 51.7 compared to 50.6 in November. Separately, central bank data showed that the monetary base in Japan surged an annual 38.2 percent in December, coming in at 267.401 trillion yen.
Australian shares tumbled as investors offloaded shares across the board. The benchmark S&P/ASX 200 fell 1.6 percent to 5,364.8, marking its biggest single-day loss since Dec. 9. Oil-related stocks bore the brunt of the selling, with Woodside Petroleum, Oil Search and Santos plunging 5-9 percent.
U.S. crude futures plummeted 5 percent to dip below $50 per barrel for the first time in more than five years yesterday and Brent crude prices fell below $55 in London for the first times since May 2009 amid concerns economic problems elsewhere in Europe, China and Japan could hurt the U.S. economy. Also, oil supplies in Iraq and Russia surged to the highest level in decades in December, data from both countries' governments showed, offsetting reduced output in Libya.
The big four banks fell between 0.8 percent and 1.2 percent, mining giant BHP Billiton dropped 4.7 percent, Rio Tinto shed 1.5 percent and Fortescue Metals Group lost about a percent. Gold miner Newcrest Mining rallied 2.5 percent as gold prices traded firm above $1200 per ounce on safe-haven buying, rising for a third straight day.
Toll Holdings closed flat on news its New Zealand unit has settled a tax dispute. Coca-Cola Amatil shares rose 0.2 percent. The drinks maker said it would hold talks with the NSW government about a proposed drinks container deposit scheme.
The Australian dollar bounced back from five-year lows as official figures showed a much healthier than expected November trade balance. Australia's trade balance remained in the red with a deficit of $925 million in November, beating forecasts for a shortfall of A$1.6 billion after a deficit of $877 million in October. Both exports and imports grew 1 percent from the previous month.
South Korea's Kospi average fell 1.74 percent to 1,882.45, posting its biggest single-day loss in a year, with commodity-linked stocks pacing the declines. SK Innovation lost 3 percent, Lotte Chemical Corp plummeted 6.1 percent and Daewoo Shipbuilding & Marine Engineering tumbled 6.9 percent. Market heavyweight Samsung Electronics fell 2.9 percent as investors awaited its fourth quarter earnings guidance due on Thursday.
Hyundai Motor shares dropped 2.1 percent on reports the automaker plans to spend $73 billion or around 81 trillion won over next 4 years on expanding capacity, building new headquarters and developing new vehicles in South Korea. LG Electronics rose 2.9 percent after unveiling its second curved-screen smartphone - the G-Flex 2.
New Zealand shares joined a global selloff in the face of weaker crude oil prices and growing political uncertainty in Greece. The benchmark NZX-50 index slid 0.74 percent to 5,561.38, with 32 of its components retreating. Steel & Tube Holdings, Fletcher Building, Sky Network Television and New Zealand Oil and Gas all fell about 3 percent each, while energy firm Mighty River Power that pays high dividend climbed 2.7 percent. Spark New Zealand rose 1.8 percent and Argosy Property gained 1.4 percent.
Elsewhere, India's Sensex was tumbling 2.6 percent, Indonesia's Jakarta Composite index was down a percent, Malaysia's KLSE Composite was declining 1.2 percent, Singapore's Straits Times index was down 1.4 percent and the Taiwan Weighted average fell 2.4 percent.
Taiwan's consumer price inflation rose an annual 0.61 percent in December, slower than November's 0.86 percent increase, official figures showed. Economists had forecast a 0.73 percent increase for the month.
U.S. stocks tumbled overnight as a surging dollar, plunging crude oil prices and lingering concerns that Greece may depart the euro zone sapped investors' appetite for risk. The Dow plummeted 1.9 percent and the S&P 500 fell 1.8 percent to post their worst daily loss in almost three months, while the tech-heavy Nasdaq dropped 1.6 percent.
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Market Analysis
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.