Asian markets struggled to find direction on Tuesday as concerns over global growth weighed on global growth after weak Chinese data weighed on oil prices and commodity-linked currencies.

The dollar held near one-week highs, while the Australian dollar, Euro and Chinese yuan fell as investors flocked to safe-haven currencies.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2%, recovering from Monday’s losses. MSCI’s benchmark index has risen 5% from this year’s lows but is still down 15% so far this year.

Weak data on Chinese industrial output and retail sales dampened sentiment on Monday, just as investors rebounded from a four-week rally in global stocks that pushed the market to its highest level in more than three months.

In addition, US single-family homebuilder confidence and New York state factory activity fell in August to their lowest levels near the COVID-19 pandemic, further signalling that the world’s largest economy is weakening as the Federal Reserve raises interest rates.

Overall, Asian shares were mixed on Tuesday, with benchmarks in Tokyo and Taiwan little changed, while South Korea gained 0.5%.

Chinese stocks rose after the central bank unexpectedly cut interest rates after data showed economic activity and credit expansion slowed sharply in July. The CSI 300 rose 0.1% after falling on Monday.

On Wall Street, major indexes climbed on Monday, reversing early losses. Shares rose for a fourth straight week on optimism that slowing US inflation could slow the pace of Fed rate hikes.

The US economy contracted in the first and second quarters, sparking an ongoing debate about whether the country is or is about to slip into a recession. Growth issues are also a major theme in Europe.

Euro zone government bond yields fell on Monday as investors worried about a possible recession and continued concerns about German production cuts due to a potential natural gas ration.

The US dollar index, which measures the greenback against six major currencies, was steady at 106.53 on Tuesday, just below the previous session’s high of 106.55, its highest level since last Monday.

The euro, the most heavily weighted currency on the dollar index, was flat at $1.0158 after falling to $1.0154, its lowest level since August 5.

The Australian dollar dipped to $0.70005, on track to break below the psychological 70-cent mark for the first time since Wednesday. The New Zealand dollar fell to $0.6349, the lowest since Wednesday.

The fragile demand outlook hit oil prices as they extended losses from the previous session.

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Brent crude futures dipped 1% to $94 a barrel, falling on Monday to their lowest since before Russia sent troops into Ukraine on February 24. WTI crude futures were down 0.7% at $88.80 a barrel.