Asian stocks erased early gains to trade largely positive on Tuesday morning but markets remained uncertain over trade concerns and as emergency austerity measures in Argentina highlighted turbulence in emerging markets.

Japan's Nikkei 225 was up in the morning after trading down earlier, rising 0.11%. South Korea's Kospi also reversed course to trade up by 0.12%.

In the Greater China region, Hong Kong's Hang Seng index added 0.14% in early hours trade. Over on the mainland, the Shanghai composite posted gains of 0.24% while the Shenzhen composite gained 0.36%.

Down Under, Australia's ASX 200 continued to trade in negative territory, down by 0.26%. The heavily weighted financial sector shed 0.67%. The Reserve Bank of Australia is due to announce its decision on interest rates later today.

Investors were also focused on Canada's expected resumption of negotiations with the US on the future of NAFTA after the two nations failed to come to an agreement last week.

In China, some ill effects from its trade war against Washington is beginning to show after the Caixin/Markit Purchasing Manager's Index came in at 50.6, its lowest level since June 2017, as export sales fell for the fifth consecutive month.

Emerging market currencies continue to suffer, with Indonesia's rupiah on Monday falling to its weakest level in more than 20 years. Meanwhile, there was a growing turbulence in Argentina after President Mauricio Macri yesterday announced new taxes on exports and steep cuts to government spending.

The Argentine peso closed 3.14% weaker on Monday and is expected to face further pressure in coming days.

US markets were closed on Monday for Labour Day.