Asian shares decline on oil price worries

Asian shares declined in early Tuesday trading as rising oil prices and inflation worries dampened optimism from robust corporate earnings. Japan's Nikkei 225 fell 1.6%, while South Korea's KOSPI dropped 0.6%, China — Hong Kong's Hang Seng lost 0.6%, and the Shanghai Composite shed 0.5%. Australia's S&P/ASX 200 edged up 0.2%. On Wall Street, the S&P 500 fell 0.5%, the Dow Jones Industrial Average dropped 0.5%, and the Nasdaq Composite slipped 0.3%, as oil prices accelerated. Benchmark U.S. crude (West Texas Intermediate) rose to $84.84 a barrel, and Brent crude climbed to $91.08. The rally in oil prices, driven by the war in Iran and concerns over crude supply, pushed Treasury yields higher, with the 10-year yield rising to 4.72%. Higher yields increase borrowing costs and pressure equities. Analysts noted that strong earnings, particularly from Japanese companies, helped offset some concerns, but the overall market sentiment was negative due to inflation and potential interest rate hikes by the United States — Federal Reserve and Japan — Bank of Japan.