Asian Markets Decline Amid Wall Street Losses and Rising Oil Prices

Oil prices remain high due to ongoing negotiations between the United States and Iran aimed at resolving the conflict and reopening the Strait of Hormuz. President Donald Trump recently rejected an Iranian proposal to allow access through the crucial waterway. The price of a barrel of U.S. crude dropped by $1.43, or about 1.5%, to $91.17, representing a decline of more than 12% from recent highs, yet still notably elevated compared to pre-conflict levels. Brent crude fell $1.31 to $96.52, still significantly higher than its pre-war price of roughly $72 a barrel.

In premarket trading, shares of CarMax surged nearly 6% after the used car retailer announced second-quarter revenue and profits that surpassed analyst expectations, along with changes in its executive team. Conversely, Oura, a producer of wearable health devices, announced a postponement of its initial public offering due to uncertainties in the IPO market despite strong demand.

The week ahead will bring various economic indicators, including job openings, consumer spending, inflation metrics, and the September jobs report. Later today, the Conference Board will release its September consumer confidence survey, which is anticipated to reflect American consumers' growing concerns about the economy due to higher energy costs stemming from the conflict in Iran.

Rising U.S. Treasury yields have also weighed on stocks as investors seek higher returns amid inflation and increasing government debt. The yield on the 10-year Treasury, hovering near its highest level since 2007, was around 5.21% early Tuesday, down from 5.27% reached on Monday.

Central banks globally have been raising interest rates to combat inflation, with Australia's central bank implementing its fourth rate hike this year, now at its highest in 15 years. The United States Federal Reserve and the Bank of Japan have also recently raised rates, the latter to its highest level in 31 years.

In European trading, Britain’s FTSE 100 rose by 0.3%, France’s CAC 40 increased by 0.2%, and Germany’s DAX gained 0.8%. Among Asian markets, Japan’s Nikkei 225 fell 0.6% to 65,481.27, South Korea’s Kospi declined 0.3% to 6,870.81, and Hong Kong’s Hang Seng dropped 0.5% to 24,523.57. Shares of Hong Kong-traded Shein plummeted 10.7% after the online fashion retailer reported a 67% drop in adjusted net profit for the quarter ending June 30 compared to the previous year. Meanwhile, the Shanghai Composite index edged up 0.2% to 3,830.45, following reports of the Chinese State Council discussing measures to enhance macroeconomic effectiveness. Australia’s S&P/ASX 200 rose 0.3% to 8,709.30, while Taiwan’s Taiex fell 0.8% and India’s Sensex decreased by 0.5%.

Associated Press journalist Rod McGuirk contributed to this report.