Asian stocks slip as spread of Delta coronavirus variant spooks investors

 In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.40% in early trading.

By Scott Murdoch

HONG KONG (Reuters) - Asian stocks slipped on Tuesday, as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence.

Trade-in Asia faced a weaker lead from Wall Street after investors there considered the impact the increasing number of global cases of Delta could have on global economic growth.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.40% in early trading.

Japan's Nikkei was off 0.85% in early trade.

China's blue-chip index CSI300 shed 0.80% while Hong Kong's Hang Seng Index fell 0.83%.

Australia's benchmark index, the S&P/ASX200 is off 0.25%, having reached a record on Monday after Square Inc announced a $29 billion offer for buy-now-pay-later firm Afterpay Ltd.

The Reserve Bank of Australia is expected to leave rates unchanged at 0.10% when it meets later in the day, but reverse the July bond tapering decision due to the lockdowns in Sydney and Brisbane caused by the expanding Delta variant.

In China, the spread of the Delta variant from the mainland's coast to its inland cities prompting authorities to implement strict counter epidemic measures to bring the outbreak under control

"Millions have been locked down in China following the worst outbreak since the COVID crisis began and given risks to supply chains this might have more of an effect on the global economy," said Elizabeth Tian, Citigroup's equity derivative solutions director.