hong kong most asian markets sank tuesday as further weakness in chinas economy fuelled worries about the effects on global growth overshadowing optimism that the united states is winning its battle against inflation and could avoid a recessionregional traders extended mondays retreat sparked by disappointing secondquarter data out of beijing that missed forecasts badly and highlighted the tough job officials face in getting the countrys postcovid recovery back on trackand while there is an expectation that fresh stimulus measures are in the pipeline analysts warned that leaders were limited in how far they could gothe figures came after last weeks reports showing inflation had flatlined suggesting china was on the brink of a period of painful deflation while exports plunged for a second straight monthyoure gonna see some stimulus coming in which means that the second quarter may have been more of the low the third quarter a bit better joyce chang global head of research at jpmorgan said on bloomberg televisionbut weve taken half a percent off of chinas growth and i think that the deflation risks are therehong kong led losses in early trade tuesday shedding more than one percent as it reopened a day after being shut because of a severe stormshanghai sydney seoul singapore wellington and taipei also dropped though tokyo manila and jakarta edged higherthe losses came despite a positive lead from wall streetin a report on china alicia garcia herrero and jianwei xu at natixis cib said in a report we are conservative about the extent of the policy support down the road fiscal policies may not be easily implemented in the current situation given the already high public debt and the reduced efficiency of these policiesthey said there was a possibility that the central bank would cut interest rates again and lower the amount of cash lenders must keep in reserve allowing them to provide more loansbut they added the effectiveness of the monetary policy space may be limited due to the lack of investor confidence currently the market is awaiting further regulatory relaxation on key sectors such as the real estate sector which could help bolster investors confidencemeanwhile us treasury secretary janet yellen warned about the effects of chinas weakness on the global economymany countries do depend on strong chinese growth to promote growth in their own economies particularly countries in asia and slow growth in china can have some negative spillovers for the united states she said in a bloomberg television interviewhowever she did say she was optimistic about the outlook for the us economy which she described as being on a good pathgrowth has slowed but our labour market continues to be quite strong i dont expect a recession she addedher comments come after last weeks news that us inflation had come down quicker than expected in june stoking hopes the fed was close to the end of its interest rate hiking cyclewhile officials are tipped to announce another rise next week debate now focuses on whether that will be