Asian stocks retreat ahead of US midterms, oil steadies

Asian stocks experienced a decline at the beginning of their trading session on Tuesday, while oil prices remained relatively stable following a previous day's drop. Investors were cautious, anticipating the start of voting for the US midterm elections. The MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 0.9%, primarily driven by a 3.8% decline in Korean shares.

The S&P 500 e-mini futures experienced a slight increase of 0.1%, but Japanese markets were closed for a public holiday. In the following days, market participants would gain insights into the potential implications of the midterm elections and the US Treasury's quarterly refunding announcement. The yield on the US 10-year Treasury bond rose by 2.1 basis points to 4.913%.

US stocks on Wall Street also dipped, with the S&P 500 sinking by 0.5%. This decline was attributed to tech sector earnings, despite a rise in US manufacturing activity in October, driven by strong domestic demand. Apple shares continued to lose value, falling 2.8% in after-hours trading following the company's disclosure of lower gross margins for the crucial holiday quarter, due to rising memory-chip costs, and a services revenue growth projection that was significantly below Wall Street's expectations.