BEIJING (dpa-AFX) - Asian stocks declined on Friday as rising crude oil prices linked to geopolitical tensions rattled investors.
Brent crude prices rose more than 1 percent toward $102 a barrel in Asian trade as concerns over supply disruptions overshadowed news of a record release of emergency reserves by members of the International Energy Agency.
Additionally, the Trump administration has issued its second authorization for buyers to take Russian oil cargoes already at sea and announced it was considering loosening shipping rules in a bid to ease growing pressure on prices.
U.S. Treasury Secretary Scott Bessent said the United States Navy may soon escort oil tankers through the Strait of Hormuz, perhaps with an international coalition.
The dollar hit a three-month high, and gold was little changed below $5,100 an ounce due to shifting Fed rate cut expectations.
Traders await the release of January's Personal Consumption Expenditures Price Index (PCE), the preferred inflation gauge of the Federal Reserve (Fed), later in the day for fresh insights into the rate outlook after overnight data showed the headline consumer price index was steady in February.
China's Shanghai Composite index fell 0.82 percent to 4,095.45 after a volatile session. Hong Kong's Hang Seng index ended 0.98 percent lower at 25,465.60, dragged down by technology stocks.
Japanese markets fell sharply on growing fears that the war in Iran will further crimp energy supplies and boost inflation. The Nikkei average dropped 1.16 percent to 53,819.61 while the broader Topix index settled 0.57 percent lower at 3,629.03.
Honda Motor shares slumped 5.6 percent after the automaker flagged its first annual loss in 70 years and announced it would cancel the launches and development of certain models in response to a slowdown in North America's EV market.
Seoul stocks closed lower for a second consecutive session after both U.S. President Donald Trump and Iran's new supreme leader struck defiant tones, with the latter ordering the Strait of Hormuz to remain closed and calling on Gulf Arabs to 'shut down' U.S. bases in the region.
As oil prices reach multiyear highs, traders also trimmed bets on Federal Reserve interest-rate cuts this year.
The benchmark Kospi index tumbled 1.72 percent to 5,487.24, with tech heavyweights Samsung Electronics and SK Hynix both falling over 2 percent. Shares of nuclear energy companies rose after the passage of a special bill on U.S. investment.
Australian markets ended slightly lower as rising bets for interest rate hikes lifted banks and offset weakness in the mining sector. The benchmark S&P/ASX 200 slid 0.14 percent to 8,617.10 while the broader All Ordinaries index closed 0.14 percent lower at 8,839.10.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 13,187.34 after a survey showed activity in the country's manufacturing sector continued to expand in February.
Overnight, U.S. stocks tumbled to reach their lowest closing level in well over three months after closing little changed for two straight days.
The sell-off came amid skyrocketing oil prices and increasing Treasury yields due to Strait of Hormuz disruptions after reports emerged that three more foreign vessels were struck off the coast of Iraq and the United Arab Emirates.
Ayatollah Mojtaba Khamenei, Iran's new Supreme Leader, raised alarm bells with a powerful ultimatum targeting U.S. military installations and said the critical Strait of Hormuz would remain closed.
President Donald Trump said that the U.S. benefits from rising oil prices, but his priority is stopping Iran from having nuclear weapons.
Economic reports painted a positive picture of the world's largest economy, with the U.S. trade deficit shrinking in January and jobless claims falling last week.
The Dow lost 1.6 percent, the tech-heavy Nasdaq Composite plunged 1.8 percent and the S&P 500 plummeted 1.5 percent.
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