In late trading South Korea's KOSPI trimmed losses to below 8%. Earlier, South Korea's financial regulators convened an emergency meeting on the stock market.

The Financial Times, citing four people, reported the US proposed that European governments unfreeze part of Russia’s sovereign assets frozen after the Ukraine war and transfer them to a Washington-controlled body to try to restart peace talks. How assets would be unfrozen and how proceeds would be used remain under discussion. The idea was floated at a Miami meeting last week attended by Trump’s peace envoy and officials from Ukraine, France, Germany, the UK, the EU and NATO, but European representatives rejected it. European governments and Kyiv said they were shocked, raising questions about US intent and signalling a markedly different US posture on ending the Russia-Ukraine war.

Bank of England deputy governor Breeden said easing in the labour market could mean the UK avoids the simultaneous wage and price pressures seen in 2022.