Brent crude pared losses after hitting a five-year low on Tuesday and plunging more than 4 percent the day before.
The yen rose strongly on Tuesday as a further drop in oil prices hit risk appetite.
China's benchmark index tumbled as much as 6 percent in the last hour of trade after rallying to a three-and-half-year high of 3,091 points earlier.
U.S. stock index futures signaled a lower open on Tuesday, tracking declines in global markets as oil crashed to a fresh five-year low.
Stocks declined Monday as trade numbers from China came in below expectations and oil companies were knocked by the falling price of crude.
European shares closed lower on Monday, with construction stocks continuing to weigh heavily after Wall Street opened down.
World oil prices slid to new five-year lows on Monday after a core OPEC member said crude will remain at $65 for several months.
Gold firmed as European equities fell, but prices struggled to reach the $1,200 per ounce level.
Investors consolidated gains made following a strong U.S. jobs report that is expected to trigger an interest rate increase next year.
Asian equities were mostly higher on Monday as investors brushed off weak data, with China's benchmark index rising to a three-year high.
Stocks rose Friday after a stronger-than-expected November payrolls report.
U.S. stock index futures declined on Monday, following weak economic data from Asia and after Morgan Stanley slashed its forecast for oil prices.
U.S. Treasurys dropped sharply on Friday after strong monthly U.S. nonfarm payrolls data that boosted expectations for a Fed interest rate hike.
European shares closed sharply higher on Friday after the U.S. monthly jobs report showed the economy adding 321,000 jobs in November.
Gold fell more than 1 percent as better-than-expected jobs data beat forecasts fueled expectations that the Fed will raise interest rates sooner.
US oil settled at a 5-year low as strong jobs data did little to lift the oil market's bearish mood a day after Saudi Arabia cut selling prices.
The U.S. dollar reached fresh multiyear highs on Friday after a stronger-than-forecast November U.S. jobs report.
Asian stocks ended mostly higher on Friday, with indices in Shanghai and Japan chalking up fresh multi-year highs ahead of U.S. jobs data.
Stocks mostly fell on Thursday after the European Central Bank said it would wait until 2015 to consider more stimulus.
U.S. government debt prices added to gains as investors weighed weekly jobless claims figures and the latest ECB interest rate announcement.
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