Asian markets mostly pulled back from their record highs on Tuesday as investors grew cautious ahead of a slate of US tech earnings that could test the artificial ⁠intelligence-driven rally.

In Hong Kong, the benchmark Hang Seng Index ended down 245 points, or 0.95 percent, at 25,679.

The China enterprises index was down 111 points, or 1.27 percent, at 8,644 while the tech index was down 112 points, or 2.28 percent, at 4,827.

Up north, the Shanghai Composite closed down seven points, or 0.2 percent, at 4,078 on turnover of 1.11 trillion yuan.

The Shenzhen Component was down 165 points, or 1.1 percent, at 14,830 on turnover of 1.42 trillion yuan while the ChiNext Index was down 52 points, or 1.4 percent, at 3,596 on turnover of 664.9 billion yuan.

In Tokyo, the benchmark Nikkei 225 Index fell almost 620 points, or 1.02 percent, to ⁠close at 59,917 after the central bank struck a hawkish tone as it kept interest rates unchanged.

In Seoul, the benchmark Kospi rose almost 26 points, or 0.39 percent, at a closing record high of 6,641 ⁠led by gains in automakers and steel manufacturers.

Geopolitical risks lingered after officials in Washington said President Donald ⁠Trump was unhappy with the latest Iranian proposal, dampening hopes of a swift resolution to the Middle East conflict, which has ⁠disrupted energy supplies and stoked global inflation concerns, especially in oil-dependent emerging markets.

"Upside pressure [on dollar/peso] to continue for now, given the ongoing lack of clarity regarding the Iran war peace talks progress," Maybank analysts ⁠wrote in a note.

"Even so, there looks to be no rapid climb up for now, given the Iran war situation remains immensely uncertain."

On the stocks front, the retreat reflects caution ahead of earnings from major US technology firms, including Microsoft, Alphabet, Amazon, Meta and Apple, this week.

"Strong tech earnings could reinforce the AI-led risk rally and help ⁠lift Asian equities back toward recent highs, but any disappointment may trigger a sharper valuation reset given how much optimism is already priced in," said Glenn Yin, director of research at brokerage ACCM. (Reuters/Xinhua)



Edited by Tony Sabine