Hong Kong (CNN Business) Asian markets tumbled Thursday, as worries grew over the possible delay of a preliminary trade deal between the United States and China.

Hang Seng Index HSI Nikkei 225 N225 Kospi KOSPI Shanghai Composite Index SHCOMP Hong Kong'sbriefly slid 2.2% in early trading. It recovered some of those losses later in the morning and was last down 1.6%. Japan'sdeclined 1.7%. South Korea'salso dropped 1.4%. China'swas off 0.2%.

US stocks closed lower on Wednesday, after a Reuters story said the United States and China may not be able to reach a "phase one" deal as both sides have heightened demands of their own.

US President Trump told reporters on Wednesday after US markets closed that he is not ready to make a deal with China because he didn't think that China was "stepping up to the level" that he wanted.

Tensions are also rising between the two countries over the political situation in Hong Kong.

Read More