Asian equities fell sharply on Tuesday led by technology shares as a widening conflict in the Middle East kept oil prices elevated, supporting the US dollar ahead of an ⁠earnings season that will set the tone for the rest of the year. In Hong Kong, the benchmark Hang Seng Index opened down 99 points, or 0.41 percent, at 24,172. The China enterprises index was 32 points, or 0.39 percent, lower at 8,136 and the tech index slid 39 points, or 0.96 percent, to 4,129. Across the border, the Shanghai Composite Index fell 36 points, or 0.96 percent, to open at 3,760. The Shenzhen Component Index dived 221 points, or 1.79 percent, to 12,163 while the ChiNext Index plunged 64 points, or 2.18 percent, to 2,899. Energy prices are back driving global markets as investors weigh the geopolitical developments in the Middle East and Russia-Ukraine, with Brent crude futures at US$105.9 per barrel, near a two-week high. Oil markets have been volatile as investors contend with the supply risks from attacks on Saudi Arabia while considering the prospect of additional diesel supplies from Russia. "Markets are rediscovering that geopolitics matters most when it feeds back into inflation," said Charu Chanana, chief investment strategist at Saxo in Singapore. "The renewed jump in oil is keeping pressure on yields and taking some shine off expensive growth stocks, ⁠especially as the Russia-Ukraine energy truce looks fragile and Middle East supply risks remain live." In Tokyo the Nikkei opened, on returning from a public holiday, by retreating 466 points, or 0.67 percent, to 68,564 before plunging deeper into the red to the tune of being 1,915 points down at one stage before noon. In Seoul, the Kospi plunged 198 points, or 3.1 percent, at 6,186 before the tech-heavy benchmark was weighed down by a losses in chip counters to be 429 points down at one stage before the lunch break. "A lot of it has to do with the chip selloff we saw ⁠on Wall Street overnight. That's bleeding into the Asian region," said Kyle ‌Rodda, a senior analyst at Capital.com. Overnight, the tech-heavy Nasdaq fell 0.5 percent, dragged by chipmakers as investors fret about the durability of the rally in AI stocks amid higher competition ‌between the United States and China. "When you add another jump in oil prices and some positioning ahead of inflation data and earnings, you ⁠have all the ingredients for a risk-off day in Asia," Rodda said. The cautious sentiment helped keep the US dollar near an 18-month high. The euro last bought US$1.1157 while the yen was at 158.50 per US dollar. (Reuters & Xinhua) Edited by Wendy Wong