Asian shares retreat as oil prices rise
Asian stock markets fell on Tuesday as investors assessed technology valuations, geopolitical tensions and the upcoming corporate earnings season.
The MSCI Asia-Pacific index excluding Japan declined 2%. South Korea’s KOSPI plunged 6%, while Japan’s Nikkei fell 2.6%.
Oil prices rose to around $105.90 a barrel. Renewed concerns about instability in the Middle East and uncertainty surrounding the Russia-Ukraine energy truce contributed to the market pressure.
US technology stocks face additional pressure
On Wall Street, the Nasdaq fell 0.5%. Chipmakers were under pressure as competition between the United States and China in the technology sector intensified.
Investors were also cautious ahead of earnings reports from major US banks, including JPMorgan and Goldman Sachs. The results are expected to provide information about the effects of higher Treasury yields and the resilience of the US economy.
Bond yields and inflation remain in focus
The US 10-year Treasury yield stood at 5.214%, close to the previous week’s 24-year high.
Higher oil prices could add to inflation risks. That may put further pressure on bond yields and expensive growth stocks.
Investors are assessing whether corporate earnings can support market valuations amid higher financing costs and geopolitical uncertainty.
