Asian equity markets erased early gains to close lower on Tuesday, driven by a late-session selloff that caught investors off guard.
The mainland China CSI 300 index, which had initially led regional rallies, reversed course sharply before the close, dragging broader sentiment down.
The reversal underscores the fragility of risk appetite as traders navigate conflicting signals from global macro data and persistent geopolitical tensions.
Crude oil prices remained elevated throughout the session, adding to the headwinds for equity investors.
High energy costs continue to weigh on corporate margins and fuel concerns about inflationary pressures, complicating the outlook for central banks.
The MSCI Asia-Pacific index, excluding Japan, reflected this tension, with gains giving way to losses as the day progressed.