Asian stocks mostly fall after Wall Street losses, oil prices rise

HONG KONG: Asian shares mostly fell on Tuesday following Wall Street losses, while US Treasury yields paused their runup after reaching their highest level in roughly two decades.

US futures edged lower, and oil prices climbed over uncertainties over US-Iran talks and the possibility of a reopening of the Strait of Hormuz, a waterway that's crucial for oil transport.

On Monday the S&P 500 slipped 0.8 per cent, the Dow Jones Industrial Average fell 0.7 per cent, and the Nasdaq composite dropped 0.9 per cent.

Stocks have been under pressure from rising yields on US Treasuries, with investors looking for higher returns under growing worries about inflation and rising US government debt.

The yield on the 10-year US Treasury was at its highest since 2007. It was at around 5.25 per cent early Tuesday, after hitting 5.27 per cent Monday, compared with around 5.17 per cent last Friday.

Already high oil prices, which contributed to inflation, went up early Tuesday, even as mediators continued to work with the US and Iran on reaching a deal. US President Donald Trump over the weekend had rejected an offer from Tehran in reopening the Strait of Hormuz.

Brent crude, the international standard, gained 1.8 per cent to USD 99.63 per barrel, well above the roughly USD 72 a barrel level in late February before the Iran war.

Japan's Nikkei 225 lost 1.2 per cent to 65,114.64. South Korea's Kospi declined 0.6 per cent to 6,847.56. Hong Kong's Hang Seng dropped 0.5 per cent to 24,516.46. Hong Kong-traded shares of Shein fell 11.7 per cent, after the fast-fashion online retail company reported its adjusted net profit for the latest quarter fell 67 per cent from the year before.

The Shanghai Composite index was up 0.1 per cent to 3,826.51 following a report from China's official Xinhua News Agency late Monday that its State Council discussed “improving the effectiveness” of macro policies to help boost its economy.

Australia's S&P/ASX 200 edged up 0.1 per cent to 8,686.20.

Taiwan's Taiex was 0.6 per cent lower, while India's Sensex fell 0.7 per cent.

The US dollar rose to 157.42 Japanese yen from 157.39 yen. The euro was trading at USD 1.1362, down from USD 1.1371.