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HONG KONG — Asian stock markets tumbled Tuesday, with Hong Kong’s index down nearly 4 percent, after relentless fears about the financial system and world economy drove Wall Street to its worst finish in more than a decade.

Every major market shuddered from losses across a range of sectors, from banks to technology firms, exporters and commodities, wiping out solid gains from the previous day.

Tokyo’s benchmark hovered near a 26-year low as news that Nomura Holdings, Japan’s biggest broker, will raise billions more in capital added to worries about the financial sector.

Most Asian bourses advanced strongly Monday on reports the US government may take a greater stake in listing financial giant Citigroup.

But concerns that Citigroup and other banks will keep suffering severe losses flared overnight amid pessimism about a quick economic recovery and doubts the government can return the reeling financial system to working order.

As the Obama administration tried to pacify fears, saying it would launch a revamped bank rescue program this week, US investors hammered stocks. The Dow Jones and Standard & Poor’s 500
indexes plummeted to their lowest closes since May 1997.

“Investors are just selling out in disgust across the board - disgust with the market, disgust with the financial problems,” said Lorraine Tan, director of equities research at Standard & Poor’s in Singapore.

“The government seems to keep throwing in money, but there doesn’t seem to be any end to the declines or solutions to the problems,” she said.

In Japan, the Nikkei 225 stock average lost 176.26 points, or 2.4 percent, to 7,202.83.

Elsewhere, Hong Kong’s Hang Seng sank 461.46, or 3.5 percent, to 12,713.64. South Korea’s Kospi fell 3.4 percent to 1,061.73.

Shanghai’s benchmark dropped 3.3 percent, Australia’s stock measure was off 0.6 percent, and Singapore’s index shed 1.8 percent.

US investors were unswayed as the government vowed to ensure the viability of banks by making sure they have enough capital and said it would start conducting “stress tests” on Wednesday to determine the health of banks.

Amid the assurances there were reports of more financial gloom. Struggling insurer American International Group Inc. said it’s evaluating “potential new alternatives” to tackle its financial problems amid reports it will soon announce a $60 billion loss and ask the government for more aid.

Overnight, the Dow dropped 250.89, or 3.4 percent, to 7,114.78. It last closed this low on May 7, 1997 when it finished at 7,085.65. The Dow hasn’t traded below the 7,000 mark since October 1997.

While S&P 500 managed to close above its Nov. 21 trading low, considered a key threshold among investors, it still took a beating. The benchmark fell 26.72, or 3.5 percent, to 743.33. It was the lowest close since April 11, 1997.

Stock futures suggested Wall Street would rise slightly Tuesday. Dow futures were up 34, or 0.5 percent, at 7,150 and S&P500 futures were up 2.9, or 0.4 percent, at 747.90.

Oil prices languished in Asian trade, with light, sweet crude for April delivery down 36 cents at $38.08 a barrel the New York Mercantile Exchange. The contract lost 4 percent, or $1.59, to settle at $38.44 overnight.

In currencies, the dollar strengthened to 95.10 yen from 94.43 yen. The euro was up slightly at $1.2730 from $1.2705. (AP)

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