BEIJING (dpa-AFX) - Asian stocks declined on Friday as surging oil prices amid escalating Middle East tensions fueled concerns over energy-driven inflation.
Adding fresh uncertainty to an already shaky global economy, the Trump administration said that it would impose higher tariffs on goods from 60 trading partners, citing forced labor concerns.
The tariffs, ranging from 10 percent to 12.5 percent, would impact major economies like the European Union, U.K., China, India, Japan and Canada. The measures replace a temporary 10 percent global tariff that expires today.
Intel's stronger-than expected Q2 revenue and upbeat guidance for the third quarter offered only fleeting support in the face of broader worries about economic outlook, consumer spending and corporate earnings.
The U.S. dollar remained weak despite rising bond yields. Gold was little changed at $4,046 an ounce after falling nearly 2 percent in the previous session.
Brent crude futures dipped nearly 2 percent below $99 a barrel but were on track for a 12 percent weekly gain amid heightened fears of global supply disruptions.
After the United States launched its 13th consecutive night of strikes on Iranian targets, Tehran retaliated with missile attacks targeting neighboring Arab countries hosting U.S. military bases.
Iran said it targeted U.S. missile systems, weapons depots and fuel storage facilities in Jordan, along with American military positions in Kuwait.
China's Shanghai Composite index slumped 1.61 percent to 3,814.20 amid concerns over inflation and market liquidity.
It is feared that the upcoming listing of memory chip manufacturer CXMT could pull cash from the equity market. Hong Kong's Hang Seng index fell 0.98 percent to 24,963.23.
Japanese markets tumbled as surging oil prices revived inflation fears. Data showed earlier in the day that Japan's core inflation rate rose to 1.6 percent in June but stayed below the BOJ's 2 percent target.
The U.S. Treasury Department has warned against excessive yen volatility, keeping the Bank of Japan on course for another interest-rate hike this year.
The Nikkei average tumbled 2.73 percent to 64,611.15 as technology stocks nosedived on concerns over whether heavy spending on AI infrastructure is sustainable. The broader Topix index settled 1.05 percent lower at 4,011.31.
Among the prominent decliners, Tokyo Electron, Advantest, SoftBank Group and Kioxia Holdings slumped 5-9 percent.
Seoul stocks plummeted after U.S. President Trump threatened to launch a 'massive attack' on Iran that could be 'bigger than ever before.' Investor sentiment was also hit by concerns that the semiconductor super cycle may have passed its peak.
The Kospi index plunged 5.72 percent to 6,690.62, with Hyundai Motor, Samsung Electronics and SK Hynix falling 7-8 percent.
Australian markets ended notably lower amid rising inflation fears and ahead of the crucial earnings season kicking off next week.
The benchmark S&P/ASX 200 dropped 0.75 percent to 8,772.30 while the broader All Ordinaries index fell 0.85 percent to 8,941.50.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.17 percent to 13,772.29.
Overnight, U.S. stocks fell sharply as AI-related concerns and surging oil prices amid escalating U.S-Iran tensions sapped investors' appetite for risk.
Both Tesla and Alphabet revealed aggressive AI capex plans, reviving concerns about heavy AI spending and lofty valuations.
Brent crude oil prices surged above $100 per barrel for the first time since May while the 10-year Treasury yield jumped to the highest level since January 2025 as clashes escalated over key shipping routes following Houthi attacks on Saudi tankers.
U.S. President Doanld Trump threatened both Iran and Yemen's Houthi rebels with 'major military punishment' after Houthis launched missile and drone strikes on oil tankers in the Red Sea to enforce a blockade on Saudi Arabia.
The tech-heavy Nasdaq Composite slumped 2.2 percent, the S&P 500 lost 1.2 percent and the Dow gave up 1 percent.
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