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Asian shares mostly lower on Tuesday as rising oil prices and inflation concerns counter robust corporate earnings

Asian markets experienced a decline on Tuesday as rising oil prices and persistent inflation concerns weighed on investor sentiment. Japan's Nikkei 225 index sank 2.5% to 67,460.73, while South Korea's Kospi lost 1.6% to 6,869.83. These losses were largely driven by the impact of higher crude oil prices, which have been a primary factor in maintaining high inflation. Analysts noted that robust corporate earnings, particularly those tied to the artificial intelligence boom, helped mitigate some of the downward pressure. Masashi Akutsu and Tetsuhiro Tokuyama of BofA Securities reported that AI demand has broadened across various industries, helping to rediscover globally competitive companies. However, the uncertainty surrounding the war in Iran and its potential impact on thes global flow of crude oil remains a significant factor. Brent crude rose 0.5% to $91.35 a barrel on Tuesday, while benchmark U.S. crude rose 0.8% to $85.16 a barrel.

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