Asian markets tumble as oil-driven geopolitics pressure tech stocks and the dollar

Asian equity markets slumped on Tuesday, driven primarily by a steep decline in technology shares across the region. Brent crude futures hovered around $105.9 per barrel, near a two-week peak, as tensions in the Middle East and lingering supply risks from Russia kept oil prices elevated. The higher oil price bolstered the US dollar, which remained near an 18-month high, and pressured bond yields, eroding the appeal of growth-focused stocks.

Analysts cited the combination of oil-price stress, a chip sell-off spilling over from the Nasdaq, and positioning ahead of upcoming inflation data as catalysts for the risk-off mood. Attention now turns to the earnings reports of major US banks, including JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo, for insight into the impact of rising yields on lending. The 10-year Treasury yield stayed close to its 24-year peak, underscoring the broader inflationary backdrop.