Asian stocks ended broadly lower on Tuesday as Middle East tensions persisted and rising bond yields made investors rethink about rate cut chances.
The dollar index remained elevated and approached the next psychological mark of 104, supported by strong U.S. treasury yields.
Gold held near record levels amid geopolitical uncertainties and ahead of the U.S. election thats less than two weeks away.
Oil prices fell about 1 percent in Asian trade on concerns about slowing demand growth in China.
Chinese and Hong Kong markets ended with modest gains after the Peoples Bank of China conducted its first operation of the Securities, Funds, and Insurance Companies Swap Facility (SFISF), aiming to leverage the role of financial institutions better in stabilizing Chinas capital market.
Chinas Shanghai Composite index rose 0.54 percent to 3,285.87 while Hong Kongs Hang Seng index edged up 0.10 percent to 20,498.95.
Japanese stocks tumbled amid concerns the ruling party may lose its lower house majority in the Oct. 27 election.
The Nikkei average fell 1.39 percent to 38,411.96 while the broader Topix index settled 1.06 percent lower at 2,651.47.
Tech stocks suffered heavy losses, with Advantest and Tokyo Electron falling around 3 percent each. Uniqlo-brand owner Fast Retailing lost 3.2 percent.
Seoul stocks fell sharply on the back of selling by foreign investors. The Kospi average ended 1.31 percent lower at 2,570.70.
Australian markets lost ground, with banks and miners leading losses on higher U.S. Treasury yields.
The benchmark S&P/ASX 200 dipped 1.66 percent to 8,205.70 while the broader All Ordinaries index finished down 1.57 percent at 8,469.
Wise Tech Global surged 2.8 percent after settling a lawsuit involving its CEO. Coal miners performed well, with Yancoal Australia climbing 3 percent and Stanmore Resources rallying 3.4 percent on China stimulus optimism.
Across the Tasman, New Zealands benchmark S&P/NZX-50 index dropped 0.85 percent to 12,813.15.
U.S. stocks ended mostly lower overnight as bond yields jumped and investors geared up for key earnings. In economic news, data showed the leading economic index fell more than expected in September.
The 10- and 30-year Treasury yields hit almost three-month closing highs on growing worries about the prospects of a rising U.S. deficit and fears about higher-for-longer interest rates.
The Dow gave up 0.8 percent to log its biggest fall in two weeks and snap a three-session winning streak. The S&P 500 slid 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.3 percent.