On Monday, Asian stock markets plummeted after global oil prices fell because of fears that a global economy weakened due to the virus outbreak, as it could provoke a crude glut.
Tokyo shares decreased by 5.07 percent, to 19,698, having pared some early losses on Monday. Other stock markets in the Asia-Pacific region traded in the red zone as well. Investors fled into safe assets in a panic amid concerns regarding an oversupply of the oil market
Oil futures dropped more than 20 percent after Saudi Arabia lowered its official selling price.
OPEC+ countries cannot agree on how much to cut production in order to support the sector. Brent crude eased by more than 25 percent, to $33.87 per barrel, while Texas-based WTI crude oil lost 26 percent, dropping to $30.57 a barrel.
The broadest Asia-Pacific MSCI composite index excluding Japan lost 3.7 percent, reiterating a record drop of late 2015.
Hong Kong Hang Seng fell by 4.06 percent, to 254,084 at 0741 GMT, Shanghai Composite fell by 3.01 percent, to 2,943.
ASX 200 in Sydney lost 7.32 percent, to 5,760, Kospi in Seoul dipped by 4.18 percent, to reach 1,954.
Concerns over the potential impact of a coronavirus outbreak in China have already caused significant damage to the tourism industry and trade in general.
Investors have reduced the yield on 30-year U.S. bonds below 1 percent, on forecasts that the Federal Reserve will be forced to lower interest rates by at least 75 basis points at its meeting on March 18, despite the recent emergency softening.
Source: Marketwatch.com, Reuters