Hong Kong (CNN Business) Asian markets pulled back Tuesday as the region digested economic woes and broader trade tensions.

Hang Seng HSI Hong Kong fell after the government reported further evidence that the local economy is suffering from long-running protests. Hong Kong'sfell as much as 1.4% in early trading, but recovered some of that later in the morning. It was last down 0.5%.

Hong Kong's retail sales plunged more than 24% in October from a year earlier — the biggest monthly decline on record — according to government statistics released Monday.

Hong Kong is also set to post its first budget deficit in 15 years, Paul Chan, the city's financial secretary, told lawmakers on Monday at a legislative council meeting.