Asia shares decline as worries about rising oil prices outweigh perks from strong earnings

Asian shares fell on Tuesday, as rising oil prices and concerns about inflation overshadowed gains from strong corporate earnings. The Nikkei 225 in Japan slipped 1.6% to 68,098.54, while Australia's S&P/ASX 200 rose 0.2% to 9,088.60. South Korea's Kospi fell 0.6% to 6,933.60, and Hong Kong's Hang Seng decreased 0.6% to 25,289.88.

The Shanghai Composite dropped 0.5% to 3,963.53. Analysts believe strong earnings from various industries, including semiconductors, power equipment, and machinery, are helping to counter worries about the impact of the Iran war on global oil supplies and energy prices. Japan relies heavily on oil imports. The Bank of Japan and the Federal Reserve are expected to raise interest rates in the coming months, similar to the U.S. central bank.

On Wall Street, stocks fell further from their Monday record highs, with the S&P 500 down 0.5%, Dow Jones Industrial Average down 272 points, and Nasdaq composite down 0.3%. Oil prices surged, with U.S. crude adding 34 cents to $84.84 a barrel, and Brent crude rising 21 cents to $91.08 a barrel. Higher oil prices have increased Treasury yields and raised pressure on the economy and investment markets.