Oil Price Worries Overwhelm Asian Markets Despite Strong Earnings

Asian shares declined in early trading on Tuesday as concerns over rising oil prices offset optimism from robust corporate earnings. Japan's benchmark Nikkei 225 fell by 1.6% to 68,098.54, while Australia's S&P/ASX 200 edged up 0.2%. South Korea's Kospi dropped 0.6% after earlier gains.

The rally in oil prices, driven by worries about the impact of the Iran war on global crude supplies, sent Treasury yields higher and put pressure on the economy. The yield on the 10-year Treasury climbed to 4.72%, up from 3.97% before the conflict with Iran.

Analysts pointed out that strong earnings reports in Asia are countering worries about rising energy prices. Japanese companies, which import almost all their oil, have seen robust earnings for the April-June quarter.