Asian Stocks Decline After Wall Street Losses as Oil Prices Rise
HONG KONG – Asian markets mostly declined Tuesday, tracking losses on Wall Street, while U.S. Treasury yields took a breather after climbing to their highest levels in about 20 years.
U.S. stock futures slipped, while oil prices advanced amid uncertainty surrounding negotiations between the United States and Iran and the potential reopening of the Strait of Hormuz, a vital route for global oil shipments.
On Monday, the S&P 500 fell 0.8%, the Dow Jones Industrial Average lost 0.7% and the Nasdaq composite declined 0.9%.
Higher U.S. Treasury yields have weighed on stocks as investors seek better returns amid mounting concerns over inflation and the growing U.S. government debt burden.
The yield on the 10-year U.S. Treasury stood near 5.25% early Tuesday, its highest level since 2007. It reached 5.27% on Monday, up from about 5.17% last Friday.
Central banks have continued raising interest rates in an effort to contain inflation. Australia’s central bank delivered its fourth rate increase of the year Tuesday, lifting its benchmark rate to a 15-year high. Earlier this month, the U.S. Federal Reserve raised rates for the first time in three years, while the Bank of Japan increased its rate to the highest level in 31 years.
Oil prices, already elevated after contributing to inflationary pressures, rose early Tuesday as mediators continued efforts to broker an agreement between the United States and Iran. U.S. President Donald Trump rejected Tehran’s weekend proposal to reopen the Strait of Hormuz.
Brent crude, the international benchmark, climbed 1.8% to $99.63 a barrel, substantially above its late-February level of about $72 before the Iran war.
Japan’s Nikkei 225 dropped 1.2% to 65,114.64, while South Korea’s Kospi fell 0.6% to 6,847.56. Hong Kong’s Hang Seng Index lost 0.5% to 24,516.46. Shares of Shein traded in Hong Kong plunged 11.7% after the fast-fashion e-commerce company reported a 67% year-over-year decline in adjusted net profit for its latest quarter.
China’s Shanghai Composite edged up 0.1% to 3,826.51 after the official Xinhua News Agency reported late Monday that the State Council had discussed “improving the effectiveness” of macroeconomic policies to support the economy.
Australia’s S&P/ASX 200 added 0.1% to reach 8,686.20.
Taiwan’s Taiex declined 0.6%, while India’s Sensex dropped 0.7%.
The U.S. dollar rose slightly against the Japanese currency to 157.42 yen from 157.39 yen. The euro fell to $1.1362 from $1.1371.
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Associated Press journalists Rod McGuirk and Stan Choe contributed to this report.
