SYDNEY: Asian shares rebounded on Tuesday as a day passed without a new escalation in the Middle East and Wall Street erased early losses to end in the black as tech stocks climbed.
Yet U.S. Defense Secretary Mark Esper told Pentagon reporters that no decision had been made and the military said the letter was only a poorly worded draft. Surveys of service sectors out overnight showed some improvement in the United States, UK and EU, stirring speculation the closely-watched ISM measure of U.S. services due later Tuesday will also show strength.
"But while the risk of conflict has increased, the reality is this is likely to be limited to proxy skirmishes," he argued."The risk of a"hot" conflict seems low as Iran is unlikely to respond in such a way that risks a significant escalation from the United States."
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