HONG KONG - Asian markets sank on Wednesday as another round of data showed China's economy continued to struggle in June, with little hope that the country's leaders can unveil the blockbuster stimulus needed to kickstart growth.
With the Independence Day holiday keeping Wall Street closed, investors had few other catalysts to drive business, with the rally from last week's US inflation data already running out of steam.
Focus now turns to the release of minutes from the Federal Reserve's June policy meeting, which should provide an insight into officials' thinking when they decided to pause interest rates for the first time after 10 straight hikes.
That will be followed Friday by closely watched jobs creation data, a key guide to the state of the world's top economy.
Asian markets fell in early trade, with Hong Kong off more than one percent.
Shanghai, Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington and Manila were also in the red.
Meanwhile, China-US relations remain an issue, and Xi Jinping's government this week added to their tech standoff by imposing export controls on key metals used in making microchips.
Officials said Monday's measure placed on shipments of gallium and germanium was to protect national security.
A day after that move, Xi urged countries to avoid decoupling and severing supply chains.
But SPI asset Management's Stephen Innes said: "Although largely unheard of in our day-to-day lives, China is easily the world's dominant producer of both, and the restriction pushes the global economy one step closer to high-tech decoupling.
"Indeed Tech Wars could make Trump's trade war with China look like a board game of Axis and Allies compared to its broader impact on the high-tech world."