Country bar in Spanish city (7)
I believe the answer is:
lebanon
'country' is the definition.
(I know that Lebanon is a Asian country)
'bar in spanish city' is the wordplay.
'bar' becomes 'ban' (I've seen this before).
'in' indicates putting letters inside.
'spanish city' becomes 'leon' (I've seen this in another clue).
'ban' put inside 'leon' is 'LEBANON'.
(Other definitions for lebanon that I've seen before include "Its capital is Beirut" , "Middle Eastern country" , "Middle Eastern region" , "Nab Noel in eastern Med. country" , "Middle East country" .)