Asian stocks sank Tuesday on fresh trade war worries after China imposed curbs on US units of a Korean shipbuilder, dealing a blow to hopes that a flare-up at the weekend had been settled.

Losses were felt most in Tokyo, where Japanese political turmoil added to the mix, with questions being raised about the chances of Sanae Takaishi becoming the country's first woman prime minister.

Markets have been whipsawed in recent days after Donald Trump on Friday lashed out at Beijing over its curbs on rare earths, fanning fears he will reignite their trade war following a months-long truce.

Traders breathed a sigh of relief Sunday, though, when he shifted his tone by insisting in a social media post that "it will all be fine", and adding that he wanted to "help" China.

That was enough for US d

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