TOKYO — Asian and European shares stumbled Wednesday after another steep drop in the price of oil reinforced worries about the potential impact on the world economy of job cuts and reduced investment in the energy industry.
Japan's benchmark Nikkei 225 lost 3.2% to finish at 17,191.25. South Korea's Kospi slipped 0.8% to 1,890.67. Hong Kong's Hang Seng was down 2.3% at 18,991.59 and China's Shanghai Composite fell 0.4% to 2,739.25. Australia's S&P/ASX 200 dropped 2.3% to 4,876.80. Markets also fell in Taiwan, Southeast Asia, India and New Zealand.
France's CAC 40 inched down 0.2% to 4,276.23 and Germany's DAX was down 0.7% at 9,513.72 in early trading. Britain's FTSE 100 slipped 0.4% to 5,899.64.
US shares were set to recover some of the previous day's losses. Dow futures were up 0.3% at 16,146. S&P 500 futures rose 0.4% to 1,904.50.
Investors are worried about spillover effects from the slump in oil prices as major energy companies cut jobs and investment. Falling oil prices are also an added challenge for economies that are battling deflation at a time when both China and the United States are showing signs of faltering growth momentum.
However, some analysts think there will eventually be an economic boost from lower energy costs as the disposable income of consumers could be increased by several trillion dollars.
"Falling oil prices have been one of the key drivers of negative sentiment in stocks. Two days of sharply weaker oil prices have refocused share markets on the potential problems flowing from the bear market in oil," said Ric Spooner, chief analyst at CMC Markets in Sydney.
"Significant cuts in capital expenditure in the energy market are taking their toll on economies,'' he said in a commentary. "Markets are also concerned about the potential impact on credit markets that might flow from bankruptcies in the oil sector if oil prices keep falling."
Benchmark US oil was up 29 cents at $30.17 a barrel in electronic trading on the New York Mercantile Exchange after being lower during much of the Asian trading day.
The futures contract slid $1.74, or 5.5%, to close at $29.88 a barrel in New York on Tuesday; it fell nearly 6% the day before. Brent crude, a benchmark for international oils, rose 26 cents to $32.98 a barrel in London. It lost $1.52, or 4.4%, to $32.72 on Tuesday.