Asian stocks mostly eased and oil prices regained strength early on Tuesday after the United States waived sanctions on Iran, while traders grappled with rising expectations the US Federal Reserve may take more aggressive action to tackle inflation later this year.

In Hong Kong, the benchmark Hang Seng Index opened up 31 points, or 0.1 percent, at 23,800 before reversing direction to be 102 points, or 0.68 percent, lower at 23,606 by mid-morning.

The China enterprises index opened flat at less than one point higher at 7,915 while the tech index was just a tad better, up two points to 4,551 before they too found themselves losing ground.

Across the border, the benchmark Shanghai Composite Index opened down 0.23 percent at 4,153.

The Shenzhen Component Index was 0.29 percent lower at 16,324 while the ChiNext Index was down 0.36 percent at 4,343.

In Tokyo, the Nikkei opened up 50 points, or 0.07 percent, at 72,404 before plunging into the red to be 671 points, or 0.93 percent, down at 71,682 at one stage before noon.

In Seoul, the Kospi opened down 31 points, or 0.34 percent, at 9,083 before falling even worse than the Nikkei to be 398 points, or 4.37 percent, lower at 8,716 at one stage before lunch.

"These are far from dull markets," said Chris Weston, head of research at Pepperstone Group in Melbourne.

"The former generals of the market appear to have lost momentum, and investors are rotating into other areas of the market that are more defensive, less AI-focused and offer more predictable cash flows." (Reuters & Xinhua)


Edited by Aaron Tam