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Asian shares gained some relief on Tuesday after Washington briefly eased trade restrictions enforced a week ago on China's Huawei, despite the fears of a further rise in tensions kept investors on edge.

Financial spread-betters anticipate London's FTSE Frankfurt's DAX and Paris's CAC to increase between 0.3 percent and 0.5 percent when they open.

MSCI's largest index of Asia-Pacific shares outside Japan increased by a minimal 0.1 percent but stayed not far from a four-month low touched on Friday.

It has dropped nearly 8 percent from a nine-month top hit just over last month. Japan's Nikkei average move back 0.3 percent.

China's blue-chip CSI300 index jumped 1.4 percent, a day after it dropped to a three-month intraday low as Washington enabled Huawei Technologies Co Ltd to buy American-made merchandises in order to maintain current networks and offer software updates to current Huawei handsets until Aug. 19. The benchmark Shanghai Composite ascended 1.2 percent.

"With the news around the U.S. and Huawei taking a turn for the worse, it seems that the trade war is increasingly showing signs of becoming a tech war," said Seema Shah, senior global investment Strategist at Principal Global Investors in London.

"The further this trend develops, the bigger the collateral damage will be – particularly in Asia and the U.S., but the ripple effect will be significant across the globe."

In New York, the S&P 500 lost 0.7 percent while the Nasdaq Composite plunged 1.5 percent. The Philadelphia Semiconductor Index tumbled 4.0 percent to two-month lows.

Huawei suppliers took a hit, with Qualcomm dipping 6.0 percent and Micron Technology 4.0 percent.

"The determination of the U.S. administration to paralyze China's aspirations to become a technology super power is clear when you consider that its actions against Huawei are not only damaging to China's technology sector, but also the U.S. tech sector," Shah said.

Some U.S. firms, such as Alphabet's Google and Apple Face ID parts supplier Lumentum Holdings Inc., have previously started to limit services to Huawei.

Rising tensions between China and U.S. firms

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Following Washington's Huawei ban, analysts suspect Beijing could take retaliatory measures versus U.S. firms, more rising tensions.

In addition to short-term financial distractions, it could have huge effects for the worldwide economy, said Cliff Tan, Head of East Asian research in Hong Kong.

"At a theoretical level, the Trump Doctrine means that in the context of national security, the U.S. government can seemingly go after anybody. That's why in my gut I wondered, has Trump signaled the end of the global supply chain, for at least a few years?" Tan said.

"I think trade diversion creates short-term winners and losers, but the overall impact on innovation may be negative for everyone," he added.

In the foreign exchange market, major currencies were on the sidelines for now.

The euro was under stress before the European election this weekend but was slight moved at $1.1158, off Monday's low of $1.1150, its lowest since May 3.

The dollar was little changed at 110.18 yen, near Monday's two-week high of 110.32 yen.

The British pound was listless near four-month lows, trading at $1.2723, from Friday's low of $1.2714, as embattled UK Prime Minister Theresa May struggled to pull together a Brexit deal.

The yuan flattened marginally to 6.9030 to the dollar in onshore trade, still not far from a 5-1/2-month low of 6.9188.

The Australian dollar plunged 0.5 percent to $0.6877 after Australia’s central bank governor said he would consider the case for lower interest rates at its June policy meeting.

Oil prices held near multi-week highs as OPEC indicated it was likely to maintain production cuts while escalating Middle East tensions provided further support.

Brent crude futures traded increase 0.3 percent at $72.20 per barrel while U.S. crude futures raised $63.31 per barrel, up 0.3 percent.

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