German think tank ZEW: private consumption and investment remain weak due to elevated energy prices.

South Korea's KOSPI fell as much as 4.76% intraday, briefly breaking below 5,500. The sell-off was driven by rising US Treasury yields and a weak first-day IPO showing from a data-center firm. As of press time, foreign investors had net sold 636.7 bln won in the Korean securities market. Institutional investors net sold 467.0 bln won, with financial investment firms net selling 241.8 bln won and pension funds 159.0 bln won. Retail investors and other corporates net bought 838.8 bln won and 261.6 bln won, respectively, which helped limit the decline. Eugene Securities analyst Huh Jae-Hwan said the selling was indiscriminate, with nearly all stocks down, and the market appearing very fragile; battery makers that led Monday's rebound also retreated.

Iran Foreign Ministry spokesman Baghaei said excessive U.S. demands are hindering progress in the talks.