Asian Markets Falter Ahead of Fed Rate Decision, Tech Earnings

Asian markets fell mostly lower on Tuesday ahead of the Federal Reserve's rate decision and major tech earnings. Semiconductor stocks were under pressure, despite relief from lower oil prices.

The Nikkei 225 in Japan dropped 3.95% to 62,364.92, while the Shanghai Composite in China declined 1.16% to 3,813.31. South Korea's Kospi 100 plummeted 11.63% to 7,389.89.

The decline in semiconductor stocks is linked to concerns over the circularity and financing burden of artificial intelligence spending by hyperscalers. Patrick Munnelly, market strategy partner at TickMill, said: 'The result is an unusual tape: lower oil should be risk-positive, but chips are heavy enough to keep index sentiment fragile.'

'Markets are getting relief from oil, but not from AI,' Munnelly added.