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HONG KONG — Most Asian stock markets extended their slump Tuesday after unremitting troubles at financial giants like American International Group and HSBC sent Wall Street tumbling to new multiyear lows overnight.

Japanese shares continued to languish, hitting near 26-year lows. Declines across the region added to the global sell-off that started last week as the world economic slump showed no signs of abating and
financial firms, despite billions in government aid, continued reeling from losses.

The pain spread Monday after AIG announced a gob-smacking $62 billion loss for the fourth quarter - the biggest in US corporate history - and accepted another $30 billion in bailout money from the
government.

In Europe, HSBC Holdings PLC said it needs to raise nearly $18 billion new capital through a share issue and reported a 70 percent drop in earnings for last year. Shares in the heavyweight lender, Europe’s largest by market value, plunged nearly 18 percent in Hong Kong trade.

With no end to the economic crisis in sight, markets in the US and Europe plummeted overnight, and the Dow Jones benchmark finished below 7,000 for the first time since May 1, 1997.

“There’s just a lot of fear driving the markets right now,” said Lucinda Chan, a director at Macquarie Private Wealth in Sydney. “The market is consumed by the global sell-down at the moment, and I think there’s going to be more pain before there’s a turnaround.”

Markets clawed back some of their losses, though most bourses headed lower.

Tokyo’s benchmark Nikkei 225 stock average lost 50.43 points, or 0.7 percent, to 7,229.72, after a 3.8 percent drop Monday. Earlier in the day, the key index dipped below its lowest close in 26 years, set Oct. 27. It remained just above a 26-year intraday low of 6,994.90 reached Oct. 28. Japan’s broader Topix index closed at its lowest since December 1983.

In Hong Kong, the Hang Seng lost 239.11 points, or 1.9 percent, to 12,078.29.

Shanghai’s key index was off 1.1 percent, with markets in Australia, Singapore, India and Taiwan also losing ground.

Elsewhere, South Korea’s Kospi gained 0.7 percent to 1,025.57.

Overnight in New York, the Dow tumbled 299.64, or 4.2 percent, to 6,763.29. It last closed below 7,000 on May 1, 1997.

Broader benchmarks also ended down, with the Standard & Poor’s 500 stock index losing 34.27 points, or 4.7 percent, to 700.82. During the session, the measure dipped below the psychologically important 700 level. It hadn’t traded below 700 since October 1996.

Wall Street looked to recover some if its losses after US futures edged higher. Dow futures were up 80, or 1.2 percent, at 6,870 and S&P500 futures climbed 9, or 1.3 percent, to 714.50.

Oil prices were higher after plunging overnight, with light, sweet crude for April delivery up 8 cents at $40.23 a barrel in Asian trade. On Monday, the contract plummeted $4.61, or more than 10 percent, to settle at $40.15 on the New York Mercantile Exchange.

In currencies, the dollar strengthened to 97.56 yen from 97.11 yen. The euro weakened to $1.2642 from $1.2554. (AP)

Business, World