Asian Stocks Retreat from Record Highs as Dollar Strengthens

Asian markets declined sharply Tuesday after last week’s record highs, weighed by a stronger U.S. dollar and weak economic data. Japan’s Nikkei 225 tumbled 1.7%, South Korea’s KOSPI lost 1.4%, and Taiwan’s TAIEX fell 0.9%. Investors turned cautious amid divergent signals from U.S. Fed officials on policy direction and weaker Chinese manufacturing data. Profit booking hit technology and export-oriented stocks, reversing recent inflows. Analysts expect short-term consolidation as regional currencies face renewed depreciation pressure against the dollar.