FX.co ★ Asian Stocks Fall on Rising Oil Prices

Asian equity markets fell on Tuesday as rising oil prices, driven by renewed hostilities in the Middle East, intensified inflation concerns and reinforced expectations of imminent interest rate hikes. US forces carried out strikes on an island in the Strait of Hormuz, while Iran launched attacks on the UAE and Jordan, marking a resumption of direct combat between the US and Iran after roughly a month-long pause. Global bond yields climbed to new highs amid mounting inflation worries, with Japan’s benchmark 10-year yield hitting its highest level in 30 years and adding further downward pressure on stocks. Equities in Australia, Japan, South Korea, China, and Hong Kong all declined, led by losses in technology and artificial intelligence–related shares.