By Julian Osamoto
Asian stocks traded unevenly on Tuesday as investors weighed rising tensions over Iran and awaited Nvidia’s latest earnings report.
Oil prices edged higher after the United States threatened tougher economic measures against Iran, raising concerns about the impact of prolonged geopolitical tensions on global markets.
US Treasury Secretary Scott Bessent said Washington would intensify efforts to isolate Tehran economically, targeting sectors including digital assets, technology, gold, aviation and shipping.
His comments came as talks to reopen the Strait of Hormuz stalled, increasing concerns over the security of a major global oil transit route.
Although oil prices fell by more than two per cent on Monday, both major contracts recovered slightly in early Asian trading.
Investors are also watching technology stocks closely after another weak session on Wall Street.
South Korea’s technology-heavy market fell more than two per cent at one point, with major chipmakers SK Hynix and Samsung Electronics among the decliners.
Elsewhere, Hong Kong, Shanghai, Taipei and Manila also recorded losses, while Tokyo, Sydney, Singapore and Wellington moved higher.
Attention is now turning to Nvidia, whose earnings have become a key indicator of investor confidence in the artificial intelligence boom.
Markets have poured billions of dollars into AI-related investments over the past two years, raising concerns about whether technology companies can generate earnings strong enough to justify their high valuations.
Analysts say even stronger-than-expected results from Nvidia may not satisfy investors if the company fails to exceed already high market expectations.
Meanwhile, Salesforce and Marvell are among other technology companies scheduled to report results this week.
Investors are also looking ahead to the annual meeting of central bankers and economists in Jackson Hole, Wyoming, where Federal Reserve Chairman Kevin Warsh is expected to speak.
His remarks could provide clues about the direction of US monetary policy as inflation remains elevated and bond yields continue to pressure financial markets.
In currency markets, the Canadian dollar recovered slightly against the US dollar after President Donald Trump threatened to double tariffs on vehicles imported from Canada.
The threat followed a breakdown in talks between Washington and Ottawa over new US tariffs on selected Canadian goods, prompting Canada to prepare retaliatory measures.
