Mainland China equities sold off sharply in the final hour of trade on Tuesday, leading the losses in Asia, amid a renewed selloff in oil and caution ahead of the U.S. Federal Reserve's monetary policy decision.
In Japan, the Nikkei 225 retreated 402.01 points, or 2.4%, to close at 16,708.90
The Hang Seng index in Hong Kong jettisoned 479.34 points, or 2.5%, to 18,860.80, with CNOOC leading the losses by 6%.
Auto parts makers in Japan were in focus amid reports that auto parts makers are in the cross hairs of European regulators. Denso, Mitsubishi Electric and Hitachi closing down more than 3% each amid media reports they are set to be fined for allegedly fixing parts prices; the amount could come up to 10% of their global turnover.
McDonald's Japan slid 2.5% on news the U.S. parent firm may be considering selling a portion of its stake in the Japan business.
Steel plays also weakened after data on Monday showed 2015 steel exports fell to a four-year low; Kobe Steel lost 6%, and JFE Holdings lost 5%.
In South Korea, the benchmark Kospi eased more than 1% after closing at a more than one-week high on Monday. Data released before the market open showed fourth-quarter gross domestic product more than halved, with growth rising a slower-than-expected 0.6% on quarter, from a 1.3% rise in the previous period.
Hyundai Motor fell 1%, and LG Electronics skidded 3.5%, ahead of reporting earnings later in the day.
CHINA
The CSI 300 Index fell back 188.38 points, or 6%, to 2,940.51. The late burst of selling came after the index traded down 2% for most of the session, giving up all of Monday's gains.
News that the People's Bank of China conducted its biggest daily open markets operation in three years failed to lift sentiment. The central bank injected 360 billion yuan into money markets on Tuesday in an attempt to boost liquidity ahead of the Lunar New Year holiday.
Oil majors such as PetroChina and Sinopec tumbled 5%each as U.S. crude fell below $30 U.S. a barrel on Tuesday.
In other markets
Australian markets were shuttered for holiday
In Singapore, the Straits Times Index moved lower 37.03 points, or 1.4%, to 2,545.61
The Kospi in Korea subtracted 21.74 points, or 1.2%, to 1,871.69
Taiwan’s Taiex index slid 65.48 points, or 0.8%, to 7,828.57
In New Zealand, the NZX 50 gave back 33.09 points, or 0.5%, to 6,142.15
