Asian stock markets were mixed Tuesday, while oil prices remained largely steady as investors watched for major economic developments later this week.
Regional markets moved within a narrow range, while US stock futures were little changed.
Oil prices were also broadly stable after US Treasury Secretary Scott Bessent announced new sanctions against Iran and warned that countries continuing to do business with Tehran could face penalties.
Japan's Nikkei 225 rose 0.4% to 65,811.19, while South Korea's Kospi fell 0.4% to 6,675.88.
Hong Kong's Hang Seng dropped 0.3% to 25,453.19 and the Shanghai Composite edged down 0.1% to 3,878.38. Australia's S&P/ASX 200 gained 0.6% to 9,158.70.
Taiwan's Taiex slipped less than 0.1%, while India's Sensex declined 0.3%.
Wall Street mixed
US stocks ended mixed Monday as some pressure in the bond market eased.
The S&P 500 fell 0.3%, moving further away from the record high it reached earlier this month. The Dow Jones Industrial Average gained 0.3%, while the Nasdaq composite lost 0.8%.
Technology stocks led the decline as investors remained concerned that the sharp rise in AI-related shares may have pushed valuations too high. There are also concerns that demand for AI chips could weaken if the technology fails to generate enough profits.
Nvidia, one of the biggest winners of the AI boom, will release its quarterly earnings report Wednesday. The results could influence the next major move in AI-related stocks.
Nvidia shares fell 2.9% Monday, making the chipmaker the biggest drag on the S&P 500. Micron Technology dropped 5.8% and Broadcom declined 2.6%.
Bond market in focus
The yield on the 10-year US Treasury note fell to 4.71% from 4.74% late Friday.
The decline came after the US Treasury Department announced plans to increase the size of its Treasury buybacks, a move that helped ease some pressure on longer-term borrowing costs.
However, analysts said the buybacks are relatively small and are unlikely to solve broader concerns over high US government debt and elevated oil prices.
Higher Treasury yields can increase borrowing costs across the economy, including mortgage rates, putting additional pressure on the housing market.
“The latest discussion about using Treasury General Account cash to help finance purchases of longer-dated bonds gave the market something to chew on Monday,” said Stephen Innes of SPI Asset Management.
“But there is a difference between forcing the bond market to blink for an afternoon and solving the underlying problem,” he said.
Fed chief's speech awaited
Federal Reserve Chairman Kevin Warsh is scheduled to speak Friday at the annual economic symposium in Jackson Hole, Wyoming.
Investors will closely watch his comments for clues about inflation and the Federal Reserve's approach to monetary policy.
Oil prices remain a major concern for markets because higher energy costs can push inflation higher.
Brent crude, the international benchmark, has remained above the $72-a-barrel level recorded before the war with Iran began in late February.
Early Tuesday, Brent crude was almost unchanged at $90.51 a barrel, while US benchmark crude rose less than 0.1% to $85.10 a barrel.
Brent prices moved between $72 and $102 a barrel last month as hopes of a US-Iran deal rose and fell. Such an agreement could allow oil tankers to move freely out of the Persian Gulf.
The latest US sanctions announced Monday also pushed Iran's currency, the rial, to a record low against the US dollar.