Asian stocks fell, halting a two-day rebound, as oil slipped back below $30 a barrel and Japanese shares led losses.

The MSCI Asia Pacific Index declined 0.9 percent to 118.75 as of 9:10 a.m. in Tokyo after capping its biggest two-day rally since October 2011. The Standard & Poor’s 500 Index halted two days of gains, with declines accelerating in the final hour of trading as crude extended its selloff. While the gyrations in China’s equity market took center stage in the first few weeks of the year, the impact of the rout in oil on industrial demand, prices and economic growth worldwide is now coming to the fore, with shares and crude prices now the most correlated since 2013.

Japan’s Topix index sank 1.9 percent after rising Monday to cap the first back-to-back gains this year. New Zealand’s benchmark gauge lost 0.3 percent. Markets in China and Hong Kong have yet to open, while Australia is closed for a holiday.

FTSE China A 50 Index futures slipped 0.2 percent in most recent trading, while those for the Hang Seng Index fell 0.5 percent and the Hang Seng China Enterprises Index lost 0.4 percent. The Shanghai Composite Index rose 0.8 percent on Monday as coal and steel producers climbed on a government pledge to further cut overcapacity and excess labor in those industries.

Source: Bloomberg