Asian Markets Decline Amid Wall Street Losses and Rising Oil Prices

HONG KONG (AP) — Asian stocks mostly fell on Tuesday following losses on Wall Street, while U.S. Treasury yields stabilized after reaching their highest levels in nearly two decades. U.S. futures also dipped, and oil prices increased amid uncertainties surrounding U.S.-Iran negotiations and the potential reopening of the critical Strait of Hormuz.

On Monday, the S&P 500 dropped by 0.8%, the Dow Jones Industrial Average fell 0.7%, and the Nasdaq composite decreased by 0.9%. The stock market has been pressured by rising yields on U.S. Treasuries as investors seek higher returns in the context of growing inflation concerns and increasing U.S. government debt. The yield on the 10-year U.S. Treasury was approximately 5.25% early Tuesday after reaching 5.27% on Monday, up from about 5.17% last Friday.

Oil prices, which are already contributing to inflation, rose early Tuesday, despite ongoing mediation efforts between the U.S. and Iran. Over the weekend, U.S. President Donald Trump rejected Tehran's proposal regarding the Strait of Hormuz. Brent crude, the international benchmark, increased by 1.8% to $99.63 per barrel, significantly above the roughly $72 per barrel level seen in late February before the Iran conflict escalated.

Japan’s Nikkei 225 index fell 1.2% to 65,114.64, while South Korea’s Kospi lost 0.6% to 6,847.56. Hong Kong’s Hang Seng index declined 0.5% to 24,516.46, impacted by an 11.7% drop in shares of Shein after the fast-fashion retailer reported a 67% decrease in adjusted net profit year-over-year.

In contrast, the Shanghai Composite index edged up 0.1% to 3,826.51, buoyed by reports from China's official Xinhua News Agency that the State Council is focused on enhancing macroeconomic policies to support the economy. Australia’s S&P/ASX 200 gained 0.1% to 8,686.20. Taiwan’s Taiex index fell by 0.6%, and India’s Sensex decreased by 0.7%.

The U.S. dollar strengthened to 157.42 Japanese yen from 157.39 yen, while the euro traded at $1.1362, down from $1.1371.

AP Business Writer Stan Choe contributed to this report.