Hang Seng index declined 0.8%, Shanghai Shenzhen CSI 300 dropped 0.4%, KOSPI shed 0.6%, Nikkei 225 slumped 3%, while Straits Times Index ticked 0.3% lower

Most Asian stocks reversed some early gains to turn sharply lower on Tuesday, with markets fretting about renewed trade tensions between China and the U.S., while Japanese shares plunged amid political uncertainty.

U.S. President Donald Trump last week threatened to impose 100% tariffs on Chinese imports in response to Beijing’s recent curbs on critical mineral exports, reigniting concerns of another round of tariff escalations between the world’s two largest economies.

China’s Ministry of Commerce on Tuesday confirmed that working-level discussions with the U.S. are ongoing this week, while vowing to “fight till the end” against U.S. measures.

The rhetoric prompted investors to pare back risk.

Hang Seng index declined 0.8% on Tuesday, extending sharp losses.

Mainland Chinese markets edged lower after rising in early trading. The blue-chip Shanghai Shenzhen CSI 300 dropped 0.4% and Shanghai Composite ticked lower.

KOSPI shed 0.6% to 3,563.19 points, after climbing as much as 1.3% to 3,646.77, its highest level ever.

Early gains were boosted by Samsung Electronics’ upbeat third-quarter profit forecast. Samsung shares slid 3% after climbing nearly the same in early trade.

Nikkei 225 slumped 3% on Tuesday after returning from a market holiday.

S&P/ASX 200 traded flat after Reserve Bank of Australia minutes showed policymakers remained concerned about inflation pressures and offered little new guidance on the near-term policy path.

Straits Times Index ticked 0.3% lower. Singapore’s central bank left monetary policy unchanged on Tuesday, as expected.

Preliminary data showed Singapore’s economy grew more than expected in the third quarter, but the year-on-year growth moderated compared to last quarter, as manufacturing output stagnated.