(Reuters) - Asian shares posted their biggest drop in three months in August, as escalating Sino-U.S. trade tensions and fears of a global recession prompted investors to sell riskier assets.
The MSCI's broadest index of Asia-Pacific shares, (MIAP00000PUS) fell 3.4% last month, its worst decline since May.
(Graphic: Asia monthly price change Aug 2019, https://fingfx.thomsonreuters.com/gfx/mkt/12/5638/5588/Asia%20monthly%20price%20change%20Aug%202019.jpg)
The United States and China announced new tariffs on each other's products in August after a brief truce.
Also, yields on 10-year U.S. Treasury notes (US10YT=RR) fell below the two-year yield (US2YT=RR) briefly, stoking further fears of a potential recession. An inverting yield curve is seen as a leading indicator of an impending economic recession.
Regional shares were also let down by a lacklustre earnings performance by Asian firms in the second quarter. Refinitiv data showed 55% of Asian firms missed their consensus earnings estimates in the June quarter.
(Graphic: Asian companies Q2 earnings miss, https://fingfx.thomsonreuters.com/gfx/mkt/12/5641/5591/Asian%20companies%20Q2%20earnings%20miss.jpg)
In August, equities markets in Hong Kong (HSI) plummeted 7.4% and Singapore (STI) shed 5.9%, while Japan (N225) and Thailand (SETI) both fell more than 3%.
All of Asia's equities markets made losses last month.
(Graphic: Asia Pacific equities performance in 2019, https://fingfx.thomsonreuters.com/gfx/mkt/12/5639/5589/Asia%20Pacific%20equities%20performance%20in%202019.jpg)