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Global stocks extend sell-off

TOKYO - Asian stocks tumbled Tuesday, extending a global market sell-off triggered by grim corporate news, expectations of a Fed rate hike and jitters about China's economy. European shares fell moderately while futures pointed to a bounce back on Wall Street.

European markets added to the previous day's losses. Germany's DAX fell 0.2 percent to 9,468.57 and Britain's FTSE 100 edged down 0.6 percent to 5,925.73.

U.S. shares were set to drift higher after a sharp sell-off Monday. S&P 500 futures were up 0.3 percent at 1,876.90. Dow futures rose 0.1 percent to 15,931.00.

Analysts say investors have been buffeted by a slew of bad news. Commodity trading company Glencore dived 29 percent in London on Monday as investors increasingly doubt its financial strength in a time of weak commodity prices. The fallout from Volkswagen's emissions rigging scandal is spreading to other auto brands. Pharmaceutical stocks in the U.S. are limping after a price-gouging incident raised the prospect of greater regulation. Fed officials, meanwhile, continue to signal they will raise U.S. interest rates this year, marking the beginning of the end of ultra-low interest rates that have underpinned stock markets.

"Investors are bailing out of resource stocks following further pressure on London-listed commodity house Glencore," said Michael McCarthy, chief strategist at CMC Markets in Sydney. "Analysts fretted over its debt pile, and its share price is now down more than 80 percent on its 2015 high. Hyperbole is in overdrive as commentators call it the resources sector Lehman Brothers moment."

Japan's benchmark Nikkei 225 dropped 4.1 percent to 16,930.84 and Australia's S&P/ASX 200 lost 3.8 percent to 4,918.40. Markets in South Korea and Taiwan were closed for holidays. Hong Kong's Hang Seng slid 3.0 percent to 20,556.60. The Shanghai Composite in mainland China shed 2.0 percent to 3,038.14. Singapore and Thailand fell while the Philippines and Indonesia were slightly higher.

Important economic indicators in Asia this week include the Tankan report on Japanese business confidence due Thursday, which will show how much faith companies have in the prospects for economic recovery. Investors who worry China's economic downturn might deepen were looking ahead to purchasing managers indexes due Thursday for manufacturing and service industries.

Benchmark crude rose 39 cents to $44.82 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.27 to close at $44.43 a barrel in New York on Monday. Brent Crude, a benchmark for international oils, was up 46 cents to $48.47.

The dollar recovered losses against the yen and rose to 119.97 yen from 119.92 yen on Monday. The euro was little changed at $1.1234 from $1.1233.

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