* MSCI index ex-Japan falls 1.7 pct, Nikkei down 1.8 pct
* Gold up 1 pct, copper down 4 pct on Greek fears
* Yen benefits as safe haven
By Chikako Mogi
TOKYO, Oct 4 (Reuters) - Asian stocks extended losses on Tuesday from the previous day's steep declines as investors continued to flee from riskier assets on growing doubts over Greece's ability to avoid default, fuelling fears of global financial turmoil and recession.
MSCI's broadest index of Asia Pacific shares outside Japan fell 1.53 percent, hovering near a 16-month low hit in late September. It fell about 3.6 percent on Monday.
Japan's Nikkei fell 1.7 percent.
Global stocks fell to a 15-month low on Monday, with financial shares hit hard on fears over the banking sector's exposure to euro zone sovereign debt.
Franco-Belgian financial group Dexia called an emergency board meeting after concerns about its exposure to Greece.
Oil fell more than $1 on Tuesday, pressured by the debt
concerns and a stronger dollar. U.S. crude
The yen, often regarded as safe haven, hovered near a 10-year peak against the euro and held firm against the dollar.
Investor preference for safer assets accelerated flows into gold, pushing the market up 1 percent while copper tumbled 4 percent as investors dumped the industrial metal on worries over a slowdown in growth and turned to dollar holdings.
The market's overwhelming focus on Greece's financial woes overshadowed a better-than-expected reading from the U.S. Institute of Supply Management's September manufacturing index and a rise in construction spending, potential evidence that the U.S. economy can avoid a recession.
European policymakers met on Monday to discuss ways to leverage the euro zone's rescue fund and pressure Greece to implement agreed structural reforms. (Editing by Alex Richardson)