The decline in crude commodity prices weighed heavily on emerging market stocks after they reached their highest level in one year.
Equities declined as well as investors focused their attention on speculation that central banks will boost stimulus and the US Federal Reserve will keep interest rates low.
The Bank of Japan plan for stimulus, which was revealed last week, underwhelmed many investors and analysts.
“Markets are likely to be cautious going into August, given volatility is generally lower, solid summer performance thus far and the wariness of any surprises around the cornerThe growth and oil price concerns appear to be the dominating factors today," said Simon Quijano-Evans, a strategist at Legal & General Group Plc in London.
Read more at Bloomberg.