(CNN) -- Most Asian stocks were lower on Tuesday, a day after record-breaking lows that also saw U.S. main indices down, while Europe reined in earlier losses to contain the damage.
In morning trade, Japan's Nikkei and Australia's All Ordinaries fell nearly 2 percent, Singapore's Straits Times was down 7 percent, while the Taiwan Weighted sank 5 percent.
On Monday, Hong Kong's major index closed down 12.7 percent, while Tokyo's bellwether Nikkei lost more than 6 percent, closing at its lowest level in 26 years. The index stumbled as the yen fluctuated near a record high against the dollar -- a condition that makes Japanese exports more expensive.
The dip in these markets comes hours after the Dow Jones industrial average closed down 203 points or 2.4 percent.
The Nasdaq composite fell 3 percent, while the Standard & Poor's 500 index fell 3.2 percent. Watch what was affecting Wall Street »
The main European markets enjoyed a mixed day with Paris' CAC 40 falling nearly 4 percent, and London was down less than a percent. Frankfurt was the lone bright spot in Europe, ending up a little less than a percentage point. See market updates
Financial ministers and central bank presidents of the world's seven leading industrialized nations, meeting in Tokyo on Monday, said yen volatility and the markets had their full attention.
"We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability," the Group of Seven said Monday in a statement.
The finance ministers and bankers said they would "cooperate where appropriate" to help stabilize world markets. They said they were monitoring the situation closely.
"We reaffirm our shared interest in a strong and stable international financial system," the statement said.
The market action comes after a weekend of Asian-European talks in Beijing, during which leaders from 43 nations, along with the heads of the European Commission and ASEAN, vowed to act together on the financial crisis.
Mideast markets also dropped sharply during the weekend, despite the announcement by Saudi King Abdullah that he would invest billions of Saudi riyals into the market.
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