BEIJING (dpa-AFX) - Asian markets fell on Monday amid renewed tensions in the Middle East and anxiety over the status of the Strait of Hormuz.
Inflation and interest-rate fears returned to the fore after the U.S. launched fresh strikes against Iran and Tehran responded by attacking Gulf Arab states, including Bahrain, Kuwait, Qatar, Jordan and Oman, further straining a fragile ceasefire between the two countries.
Iran announced the closure of the waterway 'until further notice'- a claim U.S. military and maritime authorities rejected.
The dollar rose against most of its peers while gold prices traded down more than 1 percent at $4,057 an ounce ahead of key U.S. inflation data and Federal Reserve Chair Kevin Warsh's first congressional testimony due this week.
Brent crude futures jumped nearly 4 percent toward $79 a barrel on concerns over potential supply disruptions.
China's Shanghai Composite index fell 2.06 percent to 3,913.79 as investors braced for key economic data releases from the U.S. and China. Hong Kong's Hang Seng index finished 0.16 percent higher at 24,213.72 after a choppy session.
Japanese markets tumbled as rising oil prices clouded the outlook for corporate earnings growth. The Nikkei average slumped 1.92 percent to 67,242.73, with chip-related stocks leading losses. The broader Topix index settled 0.71 percent lower at 4,007.49.
Kioxia Holdings lost 12.9 percent, Advantest fell 3.4 percent and Tokyo Electron declined 2.3 percent. Robot maker Yaskawa Electric plunged 14.3 percent after posting disappointing first-quarter results.
Seoul stocks nosedived amid intensifying geopolitical tensions in the Middle East and ahead of the Bank of Korea's policy decision due on Thursday, with the central bank widely expected to lift its base rate to 2.75 percent.
The Kospi index plummeted 8.95 percent to 6,806.93, with tech stocks pacing the decliners. Market bellwether Samsung Electronics plunged 10.7 percent while SK Hynix gave up 15.4 percent after making history with the largest-ever U.S. listing by a foreign company.
Australian markets ended on a flat note as rising oil prices reinforced expectations of higher interest rates. While gold, mining and technology stocks lost ground, gains in banks and energy stocks helped markets recover early losses.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.45 percent to 13,723.20 as investors returned from the long Matariki weekend.
U.S. stocks ended a lackluster session modestly higher on Friday, with chip and artificial intelligence-related stocks surging following a strong market debut from South Korean memory chip maker SK Hynix.
Macroeconomic developments also drew significant attention as the Federal Reserve delivered its semi-annual Monetary Policy Report to Congress ahead of Chairman Kevin Warsh's first congressional testimony.
In the report, Fed officials noted that inflation remains elevated, but they don't think it will be lasting.
The Dow and the tech-heavy Nasdaq Composite both rose around 0.3 percent while the S&P 500 added 0.4 percent.
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