FXStreet (Mumbai) - Heavy selling is seen in the Asian equities this Tuesday as risk-off prevails at full steam, following renewed weakness in oil prices and sharp fall on the Wall Street overnight. Oil prices resumed its downside bias after a 2-day short-covering rally and fell back below $ 30 threshold amid fresh oversupply worries. Moreover, an air of caution ahead of the FOMC 2-day meeting, which commences today, also keeps the bulls on the back foot. Nikkei leads Asian markets lower The Japanese benchmark index, the Nikkei 225 sinks -2% to 16,762 and drags rest of Asia lower, as the energy and steel sector stocks are under heavy pressure, while a stronger yen on risk-aversion hits exporters’ stocks. Meanwhile, USD/JPY trades -0.20% lower, just ahead of 118 handle. While the Chinese markets also deep in the red, despite, heavy liquidity injections by the Chinese central bank for the upcoming Lunar New Year. The benchmark Shanghai Composite index tanks -1.80% to 2,890. Shenzhen’s CSI 300 index falls -1.34%, while Hong Kong’s Hang Seng is down nearly 2% to below 19k mark. Australian markets are shut for the Australia Day public holiday. For more information, read our latest forex news.