Asian stocks edge higher day after China plunge

SEOUL, South Korea (AP) — Most Asian stock markets inched higher Tuesday as China's benchmark stabilized a day after plunging nearly 7 percent.

The Shanghai Composite Index wavered between gains and losses. It was last up 0.1 percent at 3,299.99. Japan's Nikkei 225 added 0.3 percent to 18,514.33 while Australia's S&P/ASX 200 slipped 0.9 percent to 5,224.40.

South Korea's Kospi was up 0.7 percent to 1,932.45 and Hong Kong's Hang Seng gained 0.2 percent to 21,371.44. Stocks in Southeast Asia were mixed.

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply af...

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Global stocks started the new year on a grim note as poor manufacturing reports from China and the U.S. triggered fears about waning growth around the world. The steep fall on Monday prompted Chinese authorities to halt trading by using a new "circuit-breaker" mechanism for the first time.

"Traders are not seeing clarity on the direction of growth. As we are all too familiar with, uncertainty is quite bad for the financial markets," said Bernard Aw, market strategist at IG in Singapore.

Tensions in the Middle East also unnerved investors. Saudi Arabia severed diplomatic relations over the weekend in a dispute over the Saudis' execution of a Shiite cleric. Concerns about a potential threat to world oil supply pushed up prices of oil.

Wall Street finished lower on Monday. The Dow Jones industrial average dropped 1.6 percent lower to 17,148.94. The Standard & Poor's 500 lost 1.5 percent to 2,012.66. The Nasdaq composite fell 2.1 percent to 4,903.09.

Benchmark U.S. crude added 28 cents to $37.04 per barrel on the New York Mercantile Exchange. The contract fell 28 cents to close at $36.76 a barrel on Monday. Brent Crude, the international standard, added 26 cents to $37.48 per barrel in London.

In currencies, the dollar rose to 119.54 yen from 119.43 yen in the previous trading session. The euro rose slightly to $1.0828 from $1.0826.

Specialist Meric Greenbaum works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sha...

Specialist Meric Greenbaum works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Trader Michel Conlon, left, and specialist Jay Woods work on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on ...

Trader Michel Conlon, left, and specialist Jay Woods work on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Specialist Jeffrey Berger works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping shar...

Specialist Jeffrey Berger works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Trader Gerard Farco works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply af...

Trader Gerard Farco works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Trader Peter Mancuso, center, works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping ...

Trader Peter Mancuso, center, works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Trader Tommy Kalikas, center, works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping ...

Trader Tommy Kalikas, center, works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Trader John Panin works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply afte...

Trader John Panin works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

Trader Mario Innella works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply a...

Trader Mario Innella works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016. U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe. (AP Photo/Richard Drew)

A woman takes a nap as a man looks at an electronic board displaying stock prices at a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai's stock ind...

A woman takes a nap as a man looks at an electronic board displaying stock prices at a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai's stock index plunged nearly 7 percent on Monday, sparking a halt in trading of Chinese shares, after weak manufacturing data and Middle East tensions weighed on Asian markets. (AP Photo/Andy Wong)

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