Asian markets closed mostly lower on Tuesday as investors weighed an escalating trade dispute between the U.S. and China.
In Japan, the Nikkei 225 recovered 3.85 points, to 22,342
The reversal came as major sectors recovered after coming under pressure earlier in the day. Technology stocks were negative territory, with blue chip SoftBank Group down 2.5%, but banks and utilities advanced.
Against the safe-haven yen, the U.S. dollar extended last session's losses to trade at 109.63
In Hong Kong, the Hang Seng fell 79.99 points, or 0.3%, to 28,881.40, as all sectors but telecommunications and utilities traded lower. The properties and construction index led losses, tumbling by 1.6% as developers such as Country Garden sank 6.5% before the market close.
CHINA
In Shanghai, the CSI 300 slid 29.37 points, or 0.8%, to 3,531.11. The Shanghai composite ended the session in bear market territory, referring to a decline of 20% or more from 52-week highs, according to Dow Jones.
U.S. stocks tumbled in the last session following weekend news that U.S. President Donald Trump intends to block some Chinese companies from investing in U.S. technology. Treasury Secretary Steven Mnuchin said the investment restrictions, reported by the Wall Street Journal, were "false, fake news," but said that the measures would apply to "all countries" instead of just China.
There were conflicting messages, however, from the Trump administration, with White House economic advisor Peter Navarro telling CNBC that there were "no plans" to impose restrictions targeting foreign investments.
In individual movers, shares of Leshi Internet Information and Technology rose 10% in Shenzhen after news that Evergrande Health Industry Group would take a 45% stake in electric car maker Faraday Future. Shares of Evergrande Health were up 66.6% in Hong Kong before the market close.
In other markets
In Singapore, the Straits Times Index regained 20.03 points, or 0.6%, to 3,280.87
The Taiex index fell 44.29 points, or 0.4%, to 10,742.17
In Korea, the Kospi index slumped 6.96 points, or 0.3%, to 2,350.92
In New Zealand, the NZX 50 inched down 6.44 points, or 0.1%, to 8,989.80
In Australia, the ASX 200 faded 12.8 points, or 0.2%, to 6,197.61
