BEIJING (AP) — Asian stocks fell Wednesday amid concern about a lack of new Japanese moves to calm bond markets and uncertainty about the outlook for U.S. monetary policy.

Oil prices fell to below $95 per barrel amid concern central bankers around the world might ease off measures to boost the global economy.

Investors were disappointed after Japan's central bank failed to deliver expected measures Tuesday to ease bond market volatility. Instead, the bank only upgraded its economic outlook.

Tokyo's Nikkei 225, the regional heavyweight, shed 1.8 percent to 13,077.83, extending declines after spiking up nearly 5 percent Monday after the prime minister promised new tax cuts. Markets in China, Hong Kong and Taiwan were closed for a holiday.

Seoul's Kospi shed 0.3 percent to 1,914.86 while Sydney's ASX S&P 200 fell 0.9 percent to 4,712.70. Singapore's FTSE Straits Times index lost 0.3 percent to 3,160.28 and New Zealand was down 0.3 percent at 4,448.97.

"Riots in Istanbul, central banks raising stop signs, bond yields on the rise and equity markets skidding; brace yourselves, we are in for a very rough ride over the coming weeks," Evan Lucas, market strategist for IG in Melbourne, said in an email commentary.

Uncertainty about China's recovery has weighed on markets following weekend data showing exports, retail sales and other indicators weaker than expected.

Trading this week has been lackluster following a volatile period that saw many major markets come off multiyear or even record highs.

Major indices in the United States, Britain, France and Germany all fell Monday.

Investors also closely watching the United States and whether the Federal Reserve eases its monetary stimulus. The Fed has been buying bonds to push down market interest rates.

Speculation that the Fed might wind down its stimulus had depressed stock prices but concern eased after last week's U.S. jobs data suggested a recovery might not be strong enough yet.

The euro has gained on easing expectations of tighter U.S. monetary policy despite uncertainty about the outlook for the 17 countries that use the common European currency. But on Wednesday, the euro slipped to $1.3309 from $1.3311 late Tuesday in New York. The dollar rose to 96.49 yen from 96.22 yen.

Benchmark crude for July delivery declined 64 cents to $94.74 per barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract fell 39 cents to settle at $95.38.

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By Gerry Shih and Bill Rigby

SAN FRANCISCO (Reuters) - Three of the largest U.S. Internet companies called on the U.S. government to provide greater transparency on national security requests on Tuesday, as they sought to distance themselves from reports that portrayed the companies as willing partners in supplying mass user data to security agencies.

Google Inc was the first to go public, releasing an open letter asking the U.S. Department of Justice for permission to disclose the number and scope of data requests each receives from security agencies, including confidential requests made under the Foreign Intelligence Surveillance Act (FISA). Microsoft Corp and Facebook Inc soon followed with similarly worded statements in support of Google.

The three companies, and several others, have come under scrutiny following disclosures last week in The Guardian and Washington Post newspapers of their role in a National Security Agency data collection program named Prism.

Google's letter - which represented the first instance of the Mountain View, California-based company acknowledging that it has received FISA requests - argued that releasing the total number of national security requests would show the company does not give the government "unfettered access" to its users' data.

"Assertions in the press that our compliance with these requests gives the U.S. government unfettered access to our users' data are simply untrue," Google Chief Legal Officer David Drummond wrote in a letter to Attorney General Eric Holder and FBI Director Robert Mueller that was published on Google's public policy blog Tuesday.

"Google's numbers would clearly show that our compliance with these requests falls far short of the claims being made," the letter said.

Google's letter came three days after Director of National Intelligence James Clapper confirmed Prism's existence and described it as an internal computer system that helped the government collect data obtained from Internet companies through FISA requests.

Since 2010, Google has published semiannual transparency reports that reveal the number of data requests it receives from authorities. But the reports have never included requests made under FISA due to their confidential nature.

Following negotiations with the FBI, Google began publishing in March the number of national security letters - confidential requests for the data of domestic users - that it receives from law enforcement officials.

Drummond argued Tuesday that publishing the number of FISA requests would "likewise serve the public interest without harming national security."

Other Internet companies that are typically fierce rivals quickly closed ranks around Google. Sources close to the three companies said the statements were not coordinated.

"Permitting greater transparency on the aggregate volume and scope of national security requests, including FISA orders, would help the community understand and debate these important issues," Microsoft said in an emailed statement.

Leading social network Facebook followed within minutes.

"We would welcome the opportunity to provide a transparency report that allows us to share with those who use Facebook around the world a complete picture of the government requests we receive, and how we respond," Ted Ullyot, Facebook's general counsel, said in an emailed statement.

Twitter's top lawyer Alex Macgillivray also tweeted in support of Google.

"Completely agree with @Google, @SenJeffMerkley & others—we'd like more NSL transparency and @Twitter supports efforts to make that happen," Macgillivray said.

(Editing by Gerald E. McCormick, Kenneth Barry, Bernard Orr and Chris Gallagher)

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CANBERRA (Reuters) - Automobile maker Volkswagen AG will recall almost 26,000 cars in Australia in response to potential gearbox problems, the company said on Wednesday, mirroring recalls already ordered in China, Singapore and Japan.

Volkswagen Australia would recall Golf, Jetta, Polo, Passat and Caddy models manufactured between June 2008 and September 2011, the German company said in a statement.

The recall would affect 25,928 vehicles fitted the seven-speed DQ200 direct-shift gearbox (DSG) after car owners complained of transmission and engine failures causing loss of power.

"In isolated cases, an electronic malfunction in the control unit inside the gearbox mechatronics may result in a power interruption," the company statement said.

Volkswagen last month recalled about 91,000 cars in Japan, citing potential gearbox problems that have already caused a recall in China. The problems were due to the hot and wet climate, the extreme stop-and-go traffic as well as pollution typical of some Asian cities, the company said.

Australia's government is investigating reports of power loss problems with Volkswagen cars amid a coronial inquiry into the death of a woman killed when a truck hit her manual transmission Golf in 2011. The Victoria state coroner is due to report in July.

Volkswagen Australia said the mechanical problems did not affect cars currently being produced and sold. The recall notice did not mention separate engine power loss issues.

In recalled cars, Volkswagen said it would replace the gearbox mechatronic unit on potentially affected vehicles at no cost to owners. Vehicle software would also be updated.

Australian newspapers have reported being contacted by hundreds of car owners who have experienced problems with their Volkswagens.

The company has previously said high-tech DSG automatic transmissions used in Australian cars are manufactured in Europe and do not require a vehicle recall.

In 2012, Volkswagen sold 3.17 million vehicles in the Asia-Pacific region, of which 2.81 million were in China.

(Reporting by Rob Taylor; Editing by Stephen Coates)

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