Asia stocks extend losses as Ukraine war, China's Covid cases hit sentiment

Hong Kong's Hang Seng Index remained mired in negative territory Tuesday, dropping 4% following an almost 5% selloff a day earlier.

Asian stocks were in the red on Tuesday as surging COVID-19 cases in China hit the confidence of investors who are already worried about the Ukraine war and the first U.S. interest rate rise in three years that could come this week.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.97%, led by pronounced weakness in Chinese stocks. The index is down 8.2% so far this month.

Global oil prices fell overnight as prospects of talks between Russia and Ukraine reaching some kind of resolution eased immediate concerns about energy supply disruption.

Those losses extended into the Asian session, however, the investor