BEIJING (dpa-AFX) - Asian stocks ended mostly lower on Wednesday as Middle East tension flared again, and regional inflation data underscored persistent price pressures.
Traders also awaited cues from key U.S. CPI data that might show inflation at a three-year high in May.
The dollar was steady while gold prices tumbled below $4,200 an ounce after an American helicopter was downed over the Strait of Hormuz and the U.S. struck Iranian air defense, ground control stations, and surveillance radar sites in retaliation.
Iran attacked Kuwait, Behran and Jordan and vowed it would leave no attack or threat unanswered. Iranian Foreign Minister Abbas Araghchi said on the social platform X, 'leave our region if you want to be safe.'
Brent crude futures fell toward $91 a barrel in Asian trade on concerns about the outlook for global growth and energy demand.
China's Shanghai Composite index dropped 0.42 percent to 3,993.23 after the release of mixed inflation data.
Hong Kong's Hang Seng index fell 0.64 percent to 24,407.96, extending losses to a sixth consecutive session amid a renewed sell-off in selected technology shares.
Data showed earlier today that China's consumer price inflation unexpectedly stalled in May while factory prices rose at the fastest pace in almost four years amid higher energy and raw material costs.
Japanese markets tumbled and the yen held near its weakest level since April as traders remained alert for possible intervention by authorities to support the currency.
In economic news, data showed Japan's producer price index jumped 6.3 percent year-on-year in May, up from a 5.3 percent gain in April and beating market forecasts of 5.5 percent as inflationary pressures rippled across domestic supply chains.
The Nikkei average slumped 1.89 percent to 64,179.27 as investors priced in a rate hike from the Bank of Japan at the June 16 policy meeting. The broader Topix index settled 1.25 percent lower at 3,847.60.
Seoul stocks nosedived amid rising U.S.-Iran tensions and ongoing rotation out of technology stocks.
The Kospi index plummeted 4.52 percent to 7,730.82, raising fears that retail investors who used borrowed funds to buy stocks could face heavy losses. Samsung Electronics, SK Squarer and SK Hynix lost 6-8 percent.
Australian markets snapped a three-session losing streak, with banks and consumer stocks pacing the gainers. The benchmark S&P/ASX 200 rose 0.57 percent to 8,653.30 while the broader All Ordinaries index ended up 0.36 percent at 8,857.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.38 percent at 13,253.65, extending gains from the previous session.
Overnight, U.S. stocks fluctuated before closing mostly lower as a rebound in technology stocks tied to the artificial intelligence boom ran out of steam.
That said, the downside in the broader market remained capped by falling crude prices and stronger-than-expected housing data.
On the geopolitical front, President Trump claimed the U.S. and Iran could reach a peace deal within 'two or three days' and that the Strait of Hormuz would open 'immediately' after such a deal.
However, raising doubts about prospects for a truce in the Middle East, Trump later vowed to respond to Iran's shooting down of a U.S. helicopter that was patrolling the Strait of Hormuz.
The tech-heavy Nasdaq Composite lost 1 percent and the S&P 500 gave up 0.3 percent while the narrower Dow gained 0.2 percent.
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