- Asian equities dropped after hawkish Fed remarks and rising Middle East tensions impacted markets
- South Korea's Kospi fell 3.06%, Japan's Nikkei 225 declined 2.07%, and Topix dropped 0.7%
- Oil prices rose 1.4% as the US struck Iranian rocket launchers near the Strait of Hormuz
Asian equities fell on Monday after hawkish remarks from Federal Reserve Chair Kevin Warsh reinforced expectations of an interest-rate increase next month, while renewed tensions in the Middle East pushed oil prices higher.
South Korea's Kospi led the regional sell-off, dropping 3.06%. Japan's Nikkei 225 declined 2.07%, while the Topix fell 0.7%. Australia's S&P/ASX 200 was little changed.
Oil climbed after the U.S. struck Iranian rocket launchers at Larak Island in the Strait of Hormuz, reviving concerns that the conflict could escalate after weeks of relative calm. Brent crude gained 1.4% to $89.30 a barrel.
The U.S. military said it had targeted Iranian rocket launchers that were preparing to send mines into the Strait of Hormuz, bringing geopolitical risks back into sharp focus for investors.
The dollar held on to recent gains as Warsh's hawkish comments strengthened market expectations that the Federal Reserve could raise interest rates next month.
U.S. stock futures also moved lower in early Asian trading following the latest developments in the Middle East. Dow Jones Industrial Average futures fell 85 points, or 0.16%, while S&P 500 futures and Nasdaq-100 futures each declined 0.2%.
The weaker start comes after a strong August for Wall Street, led by technology shares. The Dow was up 2.1% for the month and on course for a fifth consecutive monthly gain. The S&P 500 and Nasdaq Composite were headed for their first monthly advances since May, up 3% and 4%, respectively.
Both the S&P 500 and the Dow had also scaled record highs earlier in August before the latest geopolitical and monetary-policy concerns returned to the forefront.
(With inputs from Bloomberg.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
