Major Asian equity indices other than the Shanghai Composite are reporting earnings, possibly tracking gains in the US index futures.
At the time of writing, S & P / ASX200 Australia reported a 0.11% gain, and shares in South Korea rose 0.45%.
The Shanghai Composite Index has recently fallen 0.5% to 2887. The 50-day Moving Average is currently at 2.912.
The US stocks dropped in the overnight trade. The Dow Jones industrial average fell by 120 units on fears of a recession.
Notably, the US bond yield curve inversion deepened with the spread between the 10- and two-year yields falling to levels last seen in 2007.
As of writing, the futures on the S&P 500 are reporting 0.24% gains and the gains are likely providing relief to Asian investors.
The gains, however, could be short-lived if the US yield curve inversion continues, bolstering recession fears. Also, the ongoing trade dispute between the US and China will likely keep the gains, if any, under check.