Equities in emerging Asia pared early gains as investors remained jittery over the economic impact of the energy shock from the conflict in the Middle East, as Iran denied negotiations with the US to end the war.

The MSCI index of EM Asia equities gained 2 per cent after a sharp 4pc decline the previous day, driven by stocks in South Korea and Taiwan.

A broader index of Asia-Pacific equities excluding Japan advanced 1.7pc. South Korea’s KOSPI index jumped more than 4pc early in the session but traded around 2.4pc higher in the afternoon session in Seoul.

Stocks in Taiwan also gained 0.8pc, easing back from gains of up to 2pc. Singapore’s FTSE Straits Times likewise surrendered most of its early advances to trade 0.2pc higher, while shares in Bangkok were up 1pc after earlier rising nearly 1.8pc.