Asian stocks dive as focus turns to earnings, geopolitics
SPY•Asian equities fell sharply, with South Korea’s KOSPI down 6% and Japan’s Nikkei down 2.6%, as technology shares followed a Wall Street chip selloff. Brent crude was near a two-week high at $105.9 a barrel, while investors awaited US bank earnings.
1. Asian stocks fall
Asian equities fell sharply on Tuesday, led by technology shares, as Middle East conflict kept oil prices elevated ahead of the US earnings season. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2% in early trading, while South Korea’s KOSPI slid 6% and Japan’s Nikkei sank 2.6%.
2. Oil and yields in focus
Brent crude futures were at $105.9 a barrel, near a two-week high, as investors weighed supply risks from attacks on Saudi Arabia and the prospect of additional diesel supplies from Russia. The US dollar remained near an 18-month high. The 10-year Treasury yield was down 2.9 basis points at 5.214%, close to last week’s 24-year high of 5.364%.
3. Banks report results
Investors were watching results from JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo for signs of how higher Treasury yields are affecting dealmaking, lending growth and funding costs. The reports were also expected to offer insight into whether households are still paying bills, borrowing and spending at healthy levels.
