Oil cast a cloud over Asian markets again today after prices fell back below USD 30 a barrel, hammering energy firms once more and sending stocks deeper into the red.
With the euphoria of Friday's Bank of Japan stimulus but a distant memory, Tokyo led the regional losses followed by Hong Kong, where insurance giant AIA lost almost a tenth of its value at one point on fears China would tighten insurance rules.
Despite the turmoil at home China National Chemical Corp (ChemChina) today offered to buy Switzerland's Syngenta for USD 43 billion, which would be a record overseas purchase by a Chinese firm.
The plunge in oil prices to 12-year lows has sent shudders through world markets, helping wipe trillions of dollars off share valuations and even raising fears of recession.
Crude resumed its downward trend this week, jettisoning most of the gains seen in a rally last week fuelled by hopes for OPEC-Russian talks on output cuts.
US benchmark West Texas Intermediate crashed more than 11 percent on Monday and yesterday to fall back through the USD 30 level for the first time since January 21. Brent lost almost six per cent in the same period.
Today early losses were pared on bargain-buying but dealers remain on edge ahead of a US report analysts warned could see a further increase in stockpiles. WTI was up 0.6 per cent and Brent up 0.4 per cent in late Asian trade.
Oil prices have crumbled about 75 per cent since mid-2014, hit by a perfect storm of weak demand, oversupply, overproduction, a slowing global economy and a strong dollar.
After already taking a hit yesterday, regional energy stocks were buffeted again today.
In Hong Kong, CNOOC shed four per cent in late trade and PetroChina dived 4.1 per cent while Kunlun Energy sank 2.8 per cent.
Sydney-listed Santos lost 5.1 per cent and mining giant BHP Billiton lost 4.4 per cent while Woodside Petroleum fell five per cent.
The losses followed other big guns in New York and Europe. BP fell 8.7 per cent in London after it announced a loss of USD 6.48 billion last year and another 3,000 job cuts. Chief executive Bob Dudley warned: "We expect 2016 to be tough."
BP's American rival ExxonMobil managed to stay profitable but reported a 58 per cent drop in fourth-quarter earnings and announced plans to slash its capital budget and suspend its share repurchase programme.
