Asian shares fall as AI rally fails to lift regional markets

Asian shares mostly declined Tuesday in cautious trading, led by South Korea's Kospi dropping 2.8%, while Japan's Nikkei fell 0.6% and Australia's ASX 200 lost 0.8%. The declines followed a Wall Street rebound driven by AI stocks, though other sectors remained shaky and oil prices stayed high. On Wall Street, the S&P 500 rose 0.4% and the Nasdaq rallied 1.1%, boosted by Nvidia's 1.4% gain, while the Dow fell 0.1%. Investors are awaiting major company earnings reports, and Treasury yields hit multi-year highs, with the 10-year at 5.14%, as AI spending relies heavily on borrowed money. Oil prices remained elevated, with U.S. crude at $103.50 and Brent at $109.47 a barrel, due to uncertainty over the Iran war's impact on energy markets. The dollar slipped slightly to 158.45 yen, while the euro held at $1.1225.