Asia open: Dollar strength dents Asia‑Pacific stocks

On Tuesday US stock futures fell and Asian markets opened lower as a firmer US dollar and higher short‑term Treasury yields weighed on risk assets.

The US dollar index moved toward 110.00 and the two‑year Treasury yield rose to about 4.23%, its highest level since mid‑February 2025. Those moves coincided with selling in Japan, South Korea and mainland China. Tokyo’s Nikkei 225 fell about 0.9%, South Korea’s KOSPI dropped around 4.1%, Taiwan’s TAIEX eased 0.3% and China’s CSI 300 slipped 1.0%. Australia’s ASX 200 was flat while Singapore’s STI gained roughly 0.3%.

Currency markets saw USD/JPY reach an intraday high near 161.93 before trading close to 161.60. The Swiss franc underperformed against the dollar amid a relatively dovish Swiss central bank stance.

Energy markets moved sharply after US and Iranian officials agreed a 60‑day implementation roadmap and the US Treasury granted a temporary authorisation for the sale and transport of Iranian crude. Front‑month Brent and WTI futures fell toward multi‑month lows, with Brent near $78.15 per barrel. The developments led systematic funds to reduce long oil positions.

Semiconductor stocks outperformed after Micron Technology announced a multi‑billion‑dollar strategic partnership with AI developer Anthropic. Micron said it would guarantee priority supply of next‑generation high‑bandwidth memory and take part in Anthropic’s Series H funding. Micron shares rose about 7% and the Philadelphia Semiconductor Index rallied roughly 2% to a record high.

Not all large caps advanced. Shares of SpaceX, which completed a large IPO last week, slipped 3.9% to $154.60 after the company filed to sell senior unsecured notes to fund capital expenditure. The stock has posted several consecutive declines since listing.

US equity benchmarks showed near‑term technical weakness after last week’s post‑FOMC selling. The S&P 500 traded below its 20‑day moving average and remained under a short‑term resistance level near 7,557.

Fixed‑income markets were softer overall. Euro‑area yields edged higher after an upward revision to regional inflation forecasts, and global benchmark yields rose on expectations of heavy short‑duration US Treasury supply later in the week. Spot gold traded below its 20‑day moving average as firmer US yields reduced bullion demand.

Market participants will watch flash PMI releases for the Eurozone, the UK and the US over the next 24 hours for fresh data on activity and hiring. Currency moves and short‑dated Treasury yields shaped trading across Asia‑Pacific markets on Tuesday.