Asian stock markets fell broadly on Tuesday as surging U.S. Treasury yields, elevated oil prices and renewed pressure on technology shares dampened investor sentiment. Markets also awaited the Reserve Bank of Australia’s interest-rate decision, with another rate hike widely expected.
Japan’s Nikkei 225 dropped 1.3%, while the broader TOPIX lost 1.5%. South Korea’s KOSPI declined 0.8%, and Hong Kong’s Hang Seng fell 0.8%. China’s CSI 300 and Shanghai Composite slipped about 0.2% each. Singapore’s Straits Times Index fell 0.3%, while futures linked to India’s Nifty 50 edged 0.1% lower.
Regional markets followed a weaker Wall Street session as rising bond yields increased concerns over borrowing costs and equity valuations. The benchmark 10-year U.S. Treasury yield climbed above 5.27%, its highest level in 19 years, while the two-year yield approached 5% as traders increased bets on additional Federal Reserve rate hikes through mid-2027.
Oil prices added to inflation concerns, with Brent crude trading around $107 a barrel amid limited progress toward easing the U.S.-Iran conflict and restoring normal shipping through the Strait of Hormuz.
Technology stocks faced additional pressure as concerns grew over the pace and cost of artificial intelligence development. Hong Kong’s Hang Seng TECH index fell 1.2%, while SoftBank Group shares dropped 2%.
The Wall Street Journal reported that OpenAI scrapped the planned release of its GPT-6.1 Astra model after it failed internal safety controls. Investors also assessed Anthropic’s IPO prospectus, which showed revenue surged nearly twelvefold to about $4.6 billion in 2025, while the AI company posted a $42 billion net loss, including a $34 billion accounting charge.
Australia’s S&P/ASX 200 bucked the broader decline, edging higher as investors awaited the RBA. Markets expect the central bank to raise its cash rate by 25 basis points to 4.60%, the highest in nearly 15 years.
Investors are also awaiting upcoming U.S. inflation, manufacturing and labor-market data for further clues on the Federal Reserve’s policy outlook.
