BEIJING (dpa-AFX) - Asian stocks fell from record highs on Thursday as investors weighed mixed signals from Washington and Tehran for a deal to end the war and reopen the Strait of Hormuz.
The U.S. conducted fresh self-defense strikes in southern Iran and Tehran also targeted strikes on a U.S. air base, driving up global oil prices and reviving inflation concerns.
Brent crude futures rose over 2 percent toward $97 a barrel in Asian trading, after having fallen more than 5 percent in the previous session.
The dollar firmed to a one-week high while gold fell more than 1 percent to trade below $4,400 an ounce ahead of U.S. PCE inflation data later in the day, expected to show an acceleration in price pressures.
China's Shanghai Composite index edged up by 0.12 percent to 4,098.64 after a choppy session. Hong Kong's Hang Seng index tumbled 1.27 percent to 25,006.16, dragged down by technology heavyweights such as Alibaba, Meituan and Tencent Holdings.
Japanese markets declined on worries that higher energy costs could lead to a gradual tightening of monetary policy. Profit taking in tech names also weighed on markets.
The Nikkei average dipped 0.47 percent to 64,693.12 while the broader Topix index settled 0.41 percent lower at 3,902.01.
Seoul stocks ended lower to snap a four-day winning streak as artificial intelligence-related stocks came under selling pressure following their recent rally.
The Kospi average dropped 0.53 percent to 8,185.29 after closing at a new record high the previous day. Samsung Electronics fell 2.4 percent and SK Square lost 3.1 percent while SK Hynix added 2.1 percent.
Earlier in the day, the Bank of Korea kept its benchmark indexes unchanged for the eighth straight time, signaling a pivot toward tighter monetary policy as inflationary pressures build.
Australian markets fell sharply, with rate-sensitive banking and real estate stocks coming under selling pressure on concerns about stubbornly high inflation and elevated oil prices.
The benchmark S&P/ASX 200 fell 1.43 percent to 8,592.90 while the broader All Ordinaries index ended 1.40 percent lower at 8,819.60.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.16 percent to close at 13,206.11, reversing morning gains.
U.S. stocks inched up slightly overnight despite mixed signals about prospects for a deal to end the war in Iran and revive energy flows through the Strait of Hormuz.
U.S. Secretary of State Marco Rubio said there has been some progress in negotiations with Iran toward a deal and the U.S. will give diplomacy 'every chance to succeed.'
President Trump said he is 'not satisfied' yet with the terms of the deal being negotiated with Iran, asserting the Strait of Hormuz should be open for everybody.
After Iran's state TV published what it purported to be a draft of an initial, unofficial framework for a memorandum of understanding between the U.S. and Iran, the While House adamantly denied its accuracy.
The Dow added 0.4 percent to reach a record closing high. The tech-heavy Nasdaq Composite and the S&P 500 both finished marginally higher to reach record closing highs for the second day in a row.
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