On Tuesday Asia equity advance despite of an unexpected drop in China's exports heightened worries about the global economy while the British pound braced for a showdown in parliament over the government's Brexit plan.
MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat in early trade while Japan's Nikkei up 0.75% after a market holiday on Monday.
In Monday's session on Wall Street, the S&P 500 lost 0.53%, with the biggest drag coming from a 0.9% fall in technology sector.
Data on Monday showed China's exports unexpectedly fell the most in two years in December, while imports also contracted sharply, pointing to further weakness in the world's second-largest economy in 2019 and deteriorating global demand.
Oil prices backed off as the weak Chinese trade data soured the mood. U.S. crude futures stood at $51.16 per barrel, up 64 cents on Tuesday but still off Friday's five-week high of $53.31.
The British pound is likely to steal the limelight later in the day as the Britain's parliament will vote on Prime Minister Theresa May's Brexit deal.
On Monday May urged lawmakers to take a "second look" at her deal ahead of a vote that looks set to reject the agreement.Such a result could open up the possibilities of a wide range of outcomes, from a disorderly exit from the union to a reversal of Brexit.
The pound's one-month implied volatility stood at 12.5 percent, above the average for the past year of around 8.8 percent well off 20-percent plus levels seen in the days just before the UK referendum on June 23, 2016.The pound changed hands at $1.2866, having hit a two-month high of $1.2930 on Monday after a report, subsequently denied, that a pro-Brexit faction of lawmakers could support May's deal.
The euro traded at $1.1469, consolidating after hitting a 12-week high of $1.1570 touched on Thursday.
The dollar stood little changed at 108.16 yen.
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