Asian stocks retreat ahead of US midterms, oil steadies

Asian equities weakened early Tuesday as investors positioned for the opening of US midterm voting, Business Recorder reported. MSCI’s Asia-Pacific index excluding Japan lost 0.9%, with South Korean shares falling as much as 3.8%; US S&P 500 futures gained 0.1%, while Japan’s market was shut for a holiday. The S&P 500 had slipped 0.5% in the previous US session, and the 10-year Treasury yield rose 2.1 basis points to 4.913%.

Oil steadied after Monday’s sharp decline, with Brent last down 0.1% at $104.72 as traders assessed US-Iran diplomacy and reports of a US strike on Iran’s Qeshm Island. Crude had dropped more than 7% the previous day after talks involving Iranian and Qatari officials encouraged hopes of improved supply conditions. Investors were also watching the US election and Treasury refunding announcement, while the Reserve Bank of Australia was expected to raise its cash rate by 25 basis points to 4.85%.