Asia stocks extend global sell-off, Japan down 5.4 percent

The AP reports:

Asian markets tumbled Tuesday, led by a 5.4 percent slide in Tokyo, as renewed jitters about the global economy set off a wave of selling in banking stocks.

KEEPING SCORE: Japan's Nikkei 225 dived 5.4 percent to close at 16,085.44 and Australia's S&P/ASX 200 fell 2.9 percent to 4,832.10. Markets were down less severely in the Philippines, Indonesia, Thailand and New Zealand. China, Hong Kong, Taiwan and South Korea were closed for Lunar New Year holidays. Among banking stocks, National Bank of Australia retreated 4.8 percent in Sydney and Mizuho Financial sank 6.2 percent in Tokyo.

GLOBAL NERVES: Stock markets have been slump so far this year after a lackluster 2015. Several factors have kept investors in a selling mood, including falling crude oil prices, waning growth in major economies and the prospect of Federal Reserve rate hikes after several years of ultra-easy monetary policy. Tuesday's sell-off in Asia followed a wave of selling in Europe that was concentrated in bank stocks and the more financially shaky countries. The stock index in Spain was off roughly 4 percent, while Italy's lost about 5 percent. Greece's index sank about 8 percent.

Look for a "challenging " in U.S. stocks.