Asian traders suffered another roller coaster day Tuesday, watching stocks tumble dramatically at the day's opening only to recover partly before the close.

Gold broke new records, surging to more than $1,770 an ounce before settling back later in the day. Oil fell.

Analysts said the partial recovery was based in part on hopes that the U.S. Federal Reserve will announce new measures to stimulate the American economy when it meets later Tuesday.

However, in an indication of further troubles ahead, China announced its inflation rate has hit a three-year high of 6.5 percent, limiting its ability to take any stimulative action.

South Korea's Kospi stock index was the hardest hit in the stomach-churning early trading, at one point losing as much as 10 percent of its value. It ended the day down almost 3 and two-thirds percent.

Other big losers were the Hang Seng index in Hong Kong, which closed down by more than five and a half percent, and Manila which lost more than 4 percent.

Japan's Nikkei index limited losses to one and two-thirds percent for the day but still suffered its lowest close since immediately after the March 11 earthquake and tsunami. The Tokyo Electric Power company, operators of the crippled Fukushima nuclear plant, saw its stock dive after it reported a $7.4 billion loss for the three-month period through the end of June.

Shanghai ended the day virtually flat despite China's disturbing inflation report.