BEIJING (dpa-AFX) - Asian stocks ended mostly lower on Tuesday as elevated oil prices and rising bond yields amid fading hopes for a deal to end the Iran-U.S. war stoked inflation concerns.
Brent crude futures climbed above $91 a barrel after U.S. President Donald Trump said that he is not interested in renewing the expiring ceasefire agreement with Iran and threatened to bomb Oman if it 'gets in the way' of a deal with Iran on the Strait of Hormuz.
The U.S. dollar index lingered around two-month lows ahead of a slew of data such as building permits, export prices, housing starts, import prices, industrial production, and pending home sales due later in the day. Gold was subdued at $4,402 an ounce after rising for two straight sessions.
China's Shanghai Composite index edged up 0.19 percent to 3,990.30 after nine Chinese government departments issued a policy document unveiling a set of measures to unlock the consumption potential of counties and smaller cities.
Hong Kong's Hang Seng index closed marginally higher at 25,471.15, reversing an early slide.
Japanese markets slumped due to profit taking in AI and memory sectors. The Nikkei average plunged 2.54 percent to 67,460.73 while the broader Topix index closed 1.05 percent lower at 4,140.22. Kioxia Holdings plummeted 7.6 percent, Advantest declined 5.1 percent and Tokyo Electron shed 6.2 percent.
Seoul stocks ended a volatile session sharply lower as traders returned from a long holiday weekend. The Kospi index tumbled 1.55 percent to 6,869.83, snapping a five-day winning streak due to profit taking in large-cap stocks. Samsung Electronics fell 2.2 percent and Hyundai Motor lost 4 percent.
Australian markets finished marginally lower as Middle East worries offset improved August consumer sentiment data.
While the big four banks fell on housing market jitters, miner BHP advanced 2.7 percent and biotech giant CSL soared 17.3 percent after delivering strong earnings.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 1.05 percent to 13,866.18 on the back of strong results in the energy sector, with Vector rising more than 1 percent and Mercury NZ climbing 2.6 percent after posting strong fiscal 2026 earnings.
Overnight, U.S. stocks ended lower as rising oil prices and bond yields amid an apparent impasse in Middle East peace talks rekindled inflation and interest-rate worries.
International oil benchmark Brent jumped above $91 a barrel, and the 30-year yield reached its highest level since 2007 as the 60-day ceasefire framework between Washinton and Tehran expired without an extension.
Trump emphasized the effectiveness of the U.S. naval blockade on Iran, declaring the Strait of Hormuz a 'U.S. territory' and asserting Washinton DC has total control over the region.
However, data showed shipping traffic in the Strait of Hormuz sank to a new low over the weekend following attacks on oil tankers.
The Dow and the S&P 500 both fell around half a percent while the tech-heavy Nasdaq Composite declined 0.3 percent.
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