Asian markets plunge 2% as oil prices and geopolitics weigh on stocks

Asian markets tumbled on Tuesday, down about 2%, as higher oil prices and geopolitical risks weighed on stocks. South Korea’s tech-heavy KOSPI fell 6%, while Japan’s Nikkei dropped 2.6% after resuming trading following a holiday. The broad decline came as investors tracked Middle East developments and the Russia-Ukraine war, with Brent crude futures near a two-week high at $105.9 a barrel. Analysts said the energy-driven inflation risk pressured bond yields and reduced appetite for high-valued growth stocks. Technology led the drop in MSCI’s Asia-Pacific index excluding Japan, which fell 2%. Semiconductor sell-offs also spread from Wall Street. Attention then turned to US bank earnings and their impact on transaction activity and funding costs.