Asian equities were mostly lower Tuesday afternoon amid AI-related concerns and continuing Middle East tensions, while Bitcoin topped $80,000 on growing support for the cryptocurrency as a dollar hedge.
The declines across most stock markets in the region followed an overnight drop in U.S. shares tied to the artificial-intelligence trade ahead of Wednesday's earnings update from Nvidia. Chip, memory and other infrastructure names were among the biggest losers in the S&P 500 index on Monday.
South Korea's Kospi edged 0.2% lower, with chip-making index heavyweights SK Hynix and Samsung Electronics declining 1.6% and 1.0%, respectively. Hong Kong's Hang Seng Index shed 0.25%, China's Shanghai Composite was down 0.1%, and Taiwan's Taiex lost 0.2%. Meanwhile, Japan's Nikkei Stock Average rose 0.4%, reversing morning losses, and Singapore's FTSE Straits Times Index added 0.4%.
"The main theme was renewed pressure on technology and semiconductor stocks," Commerzbank Research analysts said in a note. "Investors turned cautious ahead of a major AI earnings report due on Wednesday after the close, which could test whether strong underlying demand can offset concerns over valuations and returns on investment," the analysts added.
Crude oil futures were mixed, as traders weighed new U.S. measures against Iran. Treasury Secretary Scott Bessent said Monday that the U.S. is launching a new campaign to isolate the Iranian regime.
Bessent said his department has "mapped every node, every facilitator and every network that Iran has used to smuggle oil and evade sanctions." He said the U.S. was sanctioning more than 60 entities, individuals and vessels across the world that enable the regime to procure nuclear and missile technology, earn revenue from oil and carry out cyber operations.
"The targets are digital assets, technology, gold, aviation and shipping," said Joseph Capurso, head of foreign exchange, international and geoeconomics at Commonwealth Bank of Australia, in a note. "We do not expect China--Iran's largest trade partner--to bow to U.S. pressure to cease commerce with Iran. The U.S.' campaign against Iran puts at risk the trade truce between the U.S. and China ahead of the leaders meeting next month," Capurso added.
Front-month West Texas Intermediate crude oil futures edged 0.1% higher to $85.13 a barrel, while front-month Brent crude oil futures were flat at $92.17 a barrel, according to ICE data.
Bitcoin climbed nearly 3% to about $81,238, a level last reached on May 15. The gains extend a weeklong rally that has lifted bitcoin about 25%. The asset was recently 1.7% higher at around $80,280, according to LSEG.
The digital currency's rally came after Treasury Secretary Scott Bessent said last week that the U.S. would expand its bond buybacks, seen as an effort to lower long-term yields.
The announcement triggered another round of dollar selling, with Bridgewater Associates founder Ray Dalio recommending in a blog post Friday that investors hold more bitcoin as a hedge against the risk of a looming debt crisis.
"The dollar debasement narrative is back after the Treasury's latest buyback announcement," said Glassnode Research analysts.