Asia share markets slipped on Monday as fresh drone attacks in the Gulf pushed up oil prices and bond yields, while the AI boom is set to be tested by earnings from tech diva Nvidia this week.

In Hong Kong, the benchmark Hang Seng Index opened down 123 points, or 0.48 percent, at 25,838.

The China enterprises index was down 43 points, or 0.5 percent, at 8,647 while the tech index was down 43 points, or 0.88 percent, at 4,897.

On the mainland, the benchmark Shanghai Composite Index opened down 0.37 percent at 4,120.

The Shenzhen Component Index was 0.62 percent lower at 15,465 while the ChiNext Index was down 0.87 percent at 3,895.

In Tokyo, the Nikkei opened down 109 points, or 0.2 percent, at 61,299 before its losses widened to 573 points, or 0.93 percent, at 60,835 at one point before noon.

In Seoul, the Kospi opened down almost 50 points, or 0.67 percent, at 7,443 before regaining ground to hover 83 points, or 1.11 percent, at 7,576 at one point before noon.

The opening losses came after a drone strike caused a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia reported intercepting three drones, as US President Donald Trump warned that Iran must act "fast" to reach a deal.

Meanwhile, the vital Strait of Hormuz remains closed to all but a trickle of shipping as Tehran tries to formalise its control of the waterway that used to carry 20 percent of the world's oil trade.

"The closure is draining global oil inventories fast," warned analysts at Capital Economics.

"Inventories could reach critical levels by end-June, setting the stage for Brent at US$130-US$140 per barrel, if not higher."

"If the strait is closed through year-end and oil stays around US$150 per barrel into 2027, that would push inflation to near 10 percent in the UK and euro zone, send rates back to their recent peaks and lead to global recession." (Reuters/Xinhua)


Edited by Tony Sabine