On Monday, President Trump threatened China with an additional 50% tariff on goods imported into the U.S. if Beijing didn't withdraw its 34% counter-tariff. Hours later, China's Ministry of Commerce vowed to take "countermeasures" and said it "will fight to the end" of the trade war. Two top Chinese bloggers leaked some of those potential countermeasures on Tuesday. 

A flurry of headlines overnight helped stabilize Asian equity markets. According to Goldman analyst Shubham Ghosh, some of those headlines included, "Consumption boost, leadership onshore willing to front-load stimulus, PBOC vowing sufficient funding, all adding up." 

"Onshore A-shs had a much better price action where the start was slow and it gradually picked up momentum towards the close – National team support speculated as notably combined turnover of the ETFs favoured by them hit a massive 92 bn Yuan," Ghosh told clients.