Asian equities pared losses even as investors voiced concerns about the escalating exchange of trade and investment restrictions between the U.S. and economic heavyweights China and Europe.
The MSCI Asia Pacific Index fell 0.1 percent as of 5 p.m. in Hong Kong, after sliding as much as 0.8 percent earlier Tuesday, as most major stock markets pared or erased earlier declines. China’s benchmark gauge entered a bear market, even after recouping part of its morning slump, amid growing concern about the country’s resilience to a trade war with the U.S. In Japan, the Topix index rebounded to close 0.2 percent higher.
White House trade adviser Peter Navarro sought to ease investor concerns Monday, saying the U.S. isn’t “putting investment restrictions on the world.” But his comments did little to lift sentiment.