Asian stock markets mostly declined on Tuesday, following losses on Wall Street where U.S. equities pulled back from recent record highs.
Oil prices, which had surged earlier due to rising tensions between the United States and Iran, retreated slightly. Meanwhile, U.S. stock futures posted modest gains of about 0.1%.
Trading activity across the region remained subdued, with markets in Japan, South Korea and mainland China closed for public holidays.
In Hong Kong, the Hang Seng Index dropped 1.3% to 25,757.56, while Taiwan’s Taiex index rose 0.3%. Australia’s S&P/ASX 200 fell 0.4% to 8,659.90 after the Reserve Bank of Australia increased its key interest rate to 4.35% in response to inflation pressures driven by rising fuel and commodity costs linked to Middle East instability. This marked the central bank’s third rate hike of 0.25 percentage points this year.
The bank reported Australia’s annual inflation rate stood at 4.6% through March, above its target range of 2% to 3%.
Elsewhere, India’s Sensex index declined 0.7%.
Geopolitical tensions remained a key concern. A fragile ceasefire between the United States and Iran appeared to weaken after the U.S. military said it had sunk six Iranian boats allegedly targeting civilian vessels. Despite two U.S.-flagged ships passing through the Strait of Hormuz, the crucial route for global oil and gas shipments remains largely restricted.
The United States has also imposed a maritime blockade on Iranian ports, while President Donald Trump launched “Project Freedom,” aimed at escorting stranded vessels through the strait.
Global oil benchmarks declined after recent gains. Brent crude fell $1.13 to $113.31 per barrel after briefly exceeding $114, while U.S. crude dropped $2.04 to $104.38 per barrel. Prices had been near $70 before the conflict escalated in late February.
Efforts to reach a lasting peace have stalled, with tensions rising further after the United Arab Emirates reported an Iranian attack — the first since last month’s ceasefire.
Analysts warned that the situation could deteriorate further, noting that ongoing maritime operations may heighten risks in the Persian Gulf region.
On Wall Street, the S&P 500 fell 0.4% to 7,200.75, while the Dow Jones Industrial Average dropped 1.1% to 48,941.90. The Nasdaq Composite slipped 0.2% to 25,067.80.
Shares of GameStop plunged 10.1% after it announced plans to acquire eBay, a firm with a market value roughly four times larger.
In currency trading, the U.S. dollar edged up slightly against the Japanese yen, while the euro weakened marginally against the dollar.