Share markets slid in Asia on Monday as fighting intensified in the Gulf and Iran claimed to have closed the vital Strait of Hormuz, sending oil prices surging and rekindling inflation risks globally.

In Hong Kong, the benchmark Hang Seng Index opened down 17 points, or 0.07 percent, at 24,157.

The tech index was down one point, or 0.07 percent, at 4,719 while the China enterprises index opened up three points, or 0.04 percent, at 8,042.

Up north, the Shanghai Composite Index opened down 30 points, or 0.75 percent, at 3,966.

The Shenzhen Component Index was down 137 points, or 0.92 percent, at 14,908 while the ChiNext Index was 32 points, or 0.86 percent, lower at 3,809.

In Tokyo, the Nikkei opened 147 points, or 0.21 percent, lower at 68,410 before the benchmark plunged further to be 906 points, or 1.32 percent, lower at 67,651 at one stage before lunch.

In Seoul, the Kospi opened close to 64 points, or 85 percent, down at 7,412 before it too, like the Nikkei, dived 366 points, or 4.99 percent, to hover at 7,109 at one stage before noon.

The US dollar rose with bond yields as investors narrowed the odds of a hike in interest rates from the Federal Reserve, just a day before chairman Kevin Warsh is due to face Congress for the first time in his new role.

US inflation figures for June on Tuesday could show some cooling in the headline rate of 4.2 percent as petrol prices decline, though some of that will reverse now that oil is rising anew.

"Tech continues to screen highly in our models, supported by stand-out earnings growth-momentum and attractive valuations," wrote analysts at Citi in a note.

"While AI volatility may remain elevated over the coming quarter, we maintain our overweight stance on global IT and the US. We pair these growth exposures with over weights in cyclical regions-sectors, including Japan, financials and materials." (Reuters/Xinhua)



Edited by Tony Sabine