* Ex-Japan Asia up 0.4%, Nikkei rises 0.8%
* S&P500 futures up 0.7%, Nasdaq futures flat
* U.S. debt yields off lows
* European share futures up 0.3%
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano and Julie Zhu
TOKYO/HONG KONG, Sept 8 (Reuters) - Asian shares gained on Tuesday following a small bounce in European markets and shrugging off concerns over the latest U.S.-China tensions, as investors looked to whether high-flying U.S. tech shares could recover from their recent rout.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.4%. Japan's Nikkei .N225 added 0.8%, even as revised data confirmed the nation had slumped into its worst postwar contraction, with business spending taking a bigger hit from the coronavirus pandemic than initially estimated. in mainland China and Hong Kong managed to erase early losses made after President Donald Trump on Monday ramped up his anti-Chinese rhetoric by again raising the idea of de-coupling the U.S. and Chinese economies. it's impossible and unrealistic to decouple for the two countries, his remarks would weigh on investor sentiment and increase market risks," said Hong Hao, head of research at BoCom International.
Trump's remarks followed the possible U.S. blacklisting of China's largest chip maker, Semiconductor Manufacturing International Corp (SMIC), which has hit many Chinese tech firms listed onshore and offshore. would remain a big overhang on several Chinese tech companies," Hong said. "The market cannot digest the news in just one to two days."
U.S. financial markets were shut on Monday for a public holiday while globally traded U.S. S&P500 futures EScv1 erased their Monday losses to trade 0.5% higher. Tech shares remained more fragile, however, with Nasdaq futures NQcv1 trading around flat after having lost more than 6% late last week.
While many market players were unable to pinpoint a single trigger for the Nasdaq's sudden plunge, valuations have been stretched given its sharp 75% gain from a bottom hit in March.
"Those tech shares were becoming expensive so I would see their latest fall as a healthy correction," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
Risk assets also face headwinds from creeping doubts that U.S. policymakers may not be willing to compile massive stimulus as some traders had hoped for.
"The headline figures from Friday's U.S. jobs data were pretty good, so that could lead to speculation policymakers may no longer be eager to dole out trillions of dollars to support the economy," said Masahiko Loo, portfolio manager at AllianceBernstein.
The 10-year U.S. Treasuries yield stood at 0.710% US10YT=RR , off a five-month low of 0.504% touched in August.
In currencies, sterling dropped after the European Union told Britain on Monday that there would be no trade deal if it tried to tinker with the Brexit divorce treaty. warning came after British Prime Minister Boris Johnson's government was reported to be planning new legislation to override parts of the Brexit Withdrawal Agreement it signed in January.
The pound last fetched $1.3152, having lost 0.80% on Monday to $1.3167 GBP=D4 , near its lowest levels in two weeks.
Other currencies barely moved with rises in U.S. yields helping to stem the dollar's recent weakness.
Oil prices dropped to five-week lows after Saudi Arabia made its deepest monthly price cuts to supply for Asia in five months and as uncertainty over Chinese demand clouds the market's recovery. crude futures CLc1 fell 1.8% to $39.06 per barrel. (Editing by Christopher Cushing, Shri Navaratnam and Jacqueline Wong)
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