ASIAN markets closed mixed on Tuesday due to muted movement as US markets were closed on Monday for the Labor Day holiday. However, investors remained concerned over the potential escalation of trade tensions between the US and China, and the stability of emerging market currencies.

On ongoing trade tensions between the two biggest economies, Hussein Sayed, chief market strategist at FXTM, said: "When broad tariffs on steel and aluminium were first imposed in March, it was seen as a cold war that may soon be resolved after some negotiations. After six months, it seems there are no signs of this trade war ending anytime soon.

"Markets are expecting now that the US will impose an additional US$200 billion on Chinese imports as soon as Thursday when public consultations end."