Asian shares slipped to nine-month lows on Monday as oil prices sank to fresh 5-1/2 year lows on concerns about a supply glut and slower global growth, hitting stocks of energy and commodity producers and exporters.
Investors were nervous after U.S. shares posted their biggest weekly fall in 2-1/2-years last week on losses led by energy sector, and as they expect the U.S. Federal Reserve to hint this week it is getting closer to raising interest rates.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1 percent to its lowest level since March.
Japan's Nikkei share average fell 1.3 percent, drawing little momentum from Japanese Prime Minister Shinzo Abe's big election victory on Sunday, which was a boost for his reflationary economic policies.
US Crude
U.S. crude futures fell more than 2.5 percent at one point to as low as $56.25 per barrel before rebounding. By late morning, they were up 1.3 percent.
With the world's energy watchdog late last week forecasting even lower prices next year on weaker demand and increased supply, a fresh waving of selling was sparked.
Oil's relentless slide pounded stocks and currencies exposed to energy exports on Friday, dousing the appetite for riskier assets.
Energy-exporting emerging market currencies were strained, with the Brazilian currency hitting a 9-1/2-year low and the Russian ruble hitting an all-time low The Indonesian rupiah fell to its lowest since August 1998.
The Australian dollar hit a -1/2-year low of $0.8204.