Asian markets headed lower on Tuesday as falling oil prices heightened global growth fears and weighed on investors' risk appetite.
Asian markets regained some ground as investors look to the US Federal Reserve's last policy meeting of the year.
Leading the losses, Japan's benchmark Nikkei 225 lost 2% to close at its lowest level since 31 October.
Any indication on when US rates may rise will be closely watched.
The index was at 16,755.32, while the dollar was at 117.42 yen against 117.81 yen in New York trading.
Japan's Nikkei index recouped some of its recent declines, rising 0.5% to 16839.29. Hong Kong's Hang Seng rose 0.2% to 22,712.12.
Data showing China's manufacturing activity contracting in December weighed on shares in Hong Kong.
Yields on sovereign bonds hit yearly records as investors sought cover in less risky investments.
The HSBC/Markit manufacturing purchasing managers' index initial reading fell to 49.5 in December from November's final reading of 50.
Yields on 30-year US Treasury bonds touched their lowest since late 2012 at 2.67%.
The Hang Seng index closed down 1.6% at 22,670.50, although the Shanghai Composite bucked the trend to rise above the 3,000 milestone and close at its highest since April 2011.
Japan's trade deficit in November shrank by 32% from a year ago, helped by higher exports and falling oil prices, although the amount shipments to foreign markets remained slow, according to official data.
The mainland index was up 2.3% to 3,021.52, showing a growing disconnect in sentiment between the two benchmarks.
Russia's central bank made a dramatic attempt to prop up the value of the rouble by raising interest rates to 17% from 10.5%.
Construction stocks got a boost after the country's top economic planning agency gave approval to plans for a second international airport in the capital Beijing.
But the move failed to work, with the rouble tumbling to a record low of 79 to the dollar, before recovering to about 68.
The expansion will cost $12.9bn (£8.2bn) and is aimed at easing air traffic congestion at the capital's main airport.
Oil prices have continued to fall. Brent crude lost another 18 cents to $59.83 a barrel, while US crude was down 53 cents at $55.40.
Shares in China State Construction Engineering rose 0.5%.
In Australia, shares closed at a 10-month low as falling commodity dragged down resources stocks.
The benchmark S&P/ASX 200 was down 0.7% to 5,152.3 - its lowest close since 6 February. It also marked the sixth consecutive session of declines.
South Korean shares fell, closing just above a two-month low. The Kospi ended down 0.2% at 1,904.13 points.
