Asian stocks dive as focus on earnings, geopolitics

Business Recorder reported that shares across Asia slid on Tuesday, with technology names leading the losses as a widening Middle East conflict kept oil prices high. Brent crude was trading at $105.9 per barrel, close to a two-week peak, and the dollar gained support ahead of the quarterly earnings season. MSCI's broadest gauge of Asia-Pacific stocks excluding Japan lost 2% in early trade, while South Korea's KOSPI tumbled 6% and Japan's Nikkei sank 2.6% following its return from a holiday.

Overnight on Wall Street, the Nasdaq dropped 0.5% as chipmakers came under pressure over doubts about how long the AI stock rally can last, given rising rivalry between the US and China. Strategists pointed to the oil surge and positioning before inflation data and earnings as drivers of the cautious mood. The dollar hovered close to its highest level in 18 months, with the euro at $1.1157 and the yen at 158.50 per US dollar.

Attention now turns to a run of US bank results this week, including JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo, for signs of how the recent jump in Treasury yields is affecting deal activity, lending and funding costs. The benchmark 10-year yield stood at 5.214% in Asian hours, only slightly below the 24-year high of 5.364% reached last week.