Asian equities retreated on Tuesday as technology stocks came under pressure ahead of Nvidia’s quarterly earnings report due Wednesday, while geopolitical risks from potential U.S. sanctions on Iran added to market caution.
The MSCI AC Asia Pacific index slipped about 0.5%, with declines led by South Korea’s KOSPI, which fell 1.3%. Japan’s Nikkei and TOPIX edged up 0.2% and 0.3%, respectively, while Australia’s S&P/ASX 200 slipped 0.27% to 9,058.90. India’s Nifty 50 also declined 0.3%, and China’s CSI 300 dropped 0.46%. Singapore’s FTSE Straits Times rose 0.3%, and U.S. futures pointed to a modestly higher open, with Nasdaq 100 and S&P 500 futures up 0.3% and 0.1% in Asia trading.
Technology shares weighed on sentiment as investors awaited Nvidia’s earnings, with the chipmaker expected to report quarterly revenue of roughly $92 billion. Among regional tech names, SK Hynix fell 3.5% and Samsung Electronics declined 1.8%, pressured by a weak shareholder return package. Kioxia gained 0.7%, while Sony rose 0.4%. LARGAN Precision, TDK, and Murata Manufacturing also declined.
Geopolitical jitters weighed on risk appetite after the U.S. threatened to expand secondary sanctions against countries conducting business with Iran under its “economic D-Day” strategy. Brent crude oil traded near $90.67 per barrel, reflecting concerns over potential supply disruptions.
In Australia, Coles advanced about 2.3% after reporting fiscal 2026 results above expectations. Woodside Energy posted a 7% rise in first-half profit but saw its shares fall 1% after scrapping a $5 billion clean energy investment target to refocus on oil and gas. Ampol extended gains by 0.8%, reaching its highest level since April 2024.
U.S. rate expectations remained a key focus, with traders pricing in a 25-basis-point increase by the Federal Reserve by year-end. The U.S. PCE inflation report, due Wednesday, is expected to provide further clarity on the inflation trajectory and policy path.
