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NEW YORK/LONDON (Reuters) -The U.S. dollar weakened against major currencies including the yen and euro, while China's offshore yuan hit a record low on Tuesday, amid trade disputes sparked by President Donald Trump's sweeping tariffs that have roiled markets for three days. The Japanese yen and Swiss franc continued to benefit from appetite for safe-havens, however, as investors remain concerned about the potential for a global recession. Markets are bracing for a war of attrition between the U.S. and China.

Markets were hit hard on Monday as President Trump’s latest trade war announcements shook global economies.

Chinese state holding companies vowed on Tuesday to increase share investment while a slew of listed firms announced share buybacks as Beijing stepped up efforts to stabilise a stock market rocked by U.S. tariff woes. The announcements by companies including China Chengtong Holdings Group and China Reform Holdings Corp come a day after state fund Central Huijin said it would increase share holdings to steady markets. China's stock market rebounded on Tuesday, clawing back some of Monday's 7% slump, which was fuelled by trade war and global recession fears.

The stock market tumble could have more room to run as tariffs continue to wreak havoc, Morgan Stanley's Mike Wilson said.

Japan's Nikkei share average closed 6% higher on Tuesday, recovering from a 1-1/2-year low hit in the previous session, as investors scooped up stocks, encouraged by signs of a recovery on Wall Street. The Nikkei index climbed 6.03% to 33,012.58, marking its sharpest daily percentage gain since August 6. The broader Topix also recorded a more than 6% gain, closing at 2,432.02.

World shares and U.S. futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6% as markets calmed somewhat after the shocks from President Donald Trump ’s tariff hikes. The modest rebound for most markets followed a wild day on Wall Street, where stocks careened after Trump threatened to crank his double-digit tariffs higher. Early Tuesday, China's Commerce Ministry said it would “fight to the end” and take unspecified countermeasures against the United States after Trump threatened another 50% tariff on Chinese imports.

The dramatic moves intraday — and the flimsy basis for the sudden rally — show how starved investors are for good news that could stop the sell-off.