Stocks swung between gains and losses and oil hit a one-month high in early Asian trading on Tuesday after US President Donald Trump said he was reinstating the blockade of Iranian shipping in the Gulf and would collect a 20 percent fee on cargo traversing the Strait of Hormuz.

In Hong Kong, the benchmark Hang Seng Index opened down 32 points, or 0.13 percent, at 24,181.

The tech index was down 11 points, or 0.25 percent, at 4,664 while the China Enterprises Index was down under a point, or 0.01 percent, at 8,065.

Up north, the Shanghai Composite Index opened down four points, or 0.12 percent, at 3,909.

The Shenzhen Component Index was up nine points, or 0.07 percent, at 14,532 while the ChiNext was six points, or 0.16 percent, higher at 3,729.

In Tokyo, the Nikkei struggled for direction as bargain buying was offset by renewed inflation and geopolitical concerns, opening down 239 points, or 0.36 percent, at 67,002, moving into positive territory before again losing ground to be 612 points, or 0.91 percent, down at 66,630 at one stage before noon.

In Seoul, the Kospi too saw volatility, opening down 37 points, or 0.56 percent, at 6,769, hitting a morning high near the 7,000 mark before falling into the red to be 115 points, or 1.69 percent, lower at 6,691 at one stage before midday.

Markets were also rattled by hawkish comments on Monday from US Federal Reserve governor Christopher Waller, who said the central bank may need to raise interest rates "in the near term" if coming data show inflation continuing well above the two percent target.

"While the risk had been building in the system over the past week, markets reacted aggressively" to the latest headlines from the Iran conflict, said Chris Weston, head of research at Pepperstone Group in Melbourne.

"The prospect of tighter monetary policy into a potential energy shock is rarely supportive for risk assets." (Reuters & Xinhua)


Edited by Aaron Tam