Asia stocks hit 17-month low on higher US bond yields, trade war concerns

Asian shares hit 17-month lows on Tuesday as investors fretted about everything from the Chinese economy, to trade wars, higher US bond yields and political dysfunction in Europe.

"Risk sentiment is in a foul mood and stocks aare sinking everywhere," said analysts at JPMorgan in a note. "The reasons are myriad and many are a continuation of recent overhangs."

MSCI's broadest index of Asia-Pacific shares outside Japan eased another 0.15 per cent after ending Monday at its lowest point since May last year.

Japan's Nikkei fell 1.1 per cent as it resumed from a one-day holiday, hurt in part by a rise in the safe-harbour yen.

Eyes were again on China, where blue chips shed 4.3 per cent on Monday in the largest daily drop since early 2016. While the stock market in China is far from a reliable gauge of economic activity, sharp falls do spill over into sentiment across the region.