Japan's Nikkei index has fallen another 2% after central bank governor Haruhiko Kuroda said there was no need for additional monetary stimulus to offset a recent sales tax hike.
Chinese stocks rebounded overnight after experiencing the biggest decline in seven months.
Andrew Neville, manager of the Allianz Global Small Cap Equity fund, has said the best value stocks across global markets can now be found in Southern Europe, following rallies across most of the globe.
The FTSE 100 got off to a positive start on Monday, with shares shrugging off weak data from both China and Japan to move higher.
The Nikkei index climbed to a five-week high overnight as a weak yen - and positive pensions news - provided a boost for shares.
The year always begins with Uncle Tom Cobley and all offering their 12-month forecasts for a number of major asset classes.