Asian equities retreated Tuesday as investors weighed fresh U.S. sanctions threats against Iran and lingering concerns over the tech sector ahead of Nvidia’s quarterly results.
The MSCI AC Asia Pacific index declined about 0.5%, with South Korea’s KOSPI leading losses at 1.3% after paring an earlier sharper drop. Japan’s Nikkei and TOPIX edged up 0.2% and 0.3%, respectively, while Australia’s S&P/ASX 200 closed down 0.27% at 9,058.90. China’s CSI 300 and Shanghai Composite fell 0.5% and 0.14%, while Hong Kong’s Hang Seng slipped 0.3%.
Nvidia’s earnings report, scheduled for Wednesday, is expected to show quarterly revenue of roughly $92 billion, drawing attention amid broader tech-sector volatility. The company’s outlook remains a key focus for investors amid regulatory and geopolitical risks.
South Korean chipmakers came under pressure, with SK Hynix dropping 3.5% and Samsung Electronics falling 1.8%. Samsung’s shares also weakened after the company announced a shareholder-return package that disappointed investors. LARGAN Precision slid 1.6%, while Kioxia gained 0.7%.
In Australia, Coles surged 2.3% after reporting stronger-than-expected full-year results for 2026. Energy stocks showed mixed performance: Woodside Energy’s shares fell 1% despite a 7% rise in first-half profit, as the company abandoned a $5 billion clean-energy investment target to prioritize oil and gas. Ampol extended gains by 0.8%, reaching its highest share price since April 2024.
Brent crude held around $92 a barrel, pulling back from earlier highs as oil markets reacted to geopolitical developments. The Trump administration’s threat to expand secondary sanctions on countries dealing with Tehran added to Middle East tensions, which have intermittently disrupted energy markets and benefited oil producers.
U.S. personal consumption expenditures data, due Wednesday, will provide further insight into inflation trends ahead of the Federal Reserve’s next policy meeting. Traders currently price in a single 25-basis-point rate hike by the end of 2026.
Regional trading disruptions included closures in Indonesia and Malaysia for Prophet Muhammad’s Birthday, with markets set to reopen Wednesday. Texas Governor Greg Abbott ordered a temporary halt on new data-center project approvals due to grid reliability concerns amid rising electricity demand.
