Asian equity markets were mostly lower at the start of a new week as oil prices rose following the latest US attacks on Iran and hawkish comments from Federal Reserve chair Kevin Warsh increased expectations of a US interest-rate hike.

In Hong Kong, the benchmark Hang Seng Index opened down 164 points, or 0.64 percent, at 25,420.

The China enterprises index was 46 points, or 0.55 percent, lower at 8,444 while the tech index inched down 19 points, or 0.42 percent, to 4,585.

On the mainland, the Shanghai Composite Index opened down 25 points, or 0.65 percent, at 3,926.

The Shenzhen Component Index was 188 points, or 1.35 percent, lower at 13,764 while the ChiNext Index slipped 57 points, or 1.67 percent, to 3,367.

In Tokyo, the Nikkei opened down 737 points, or 1.11 percent, at 66,405 before losses deepened to put the 225-strong benchmark 1,072 points lower at one stage before the midday mark.

In Seoul, the Kospi opened the day down 175 points, or 2.58 percent, at 6,613 before paring its losses to be 133 points lower at one stage before noon.

Most of the losses came after Warsh flagged fighting high inflation as a priority in a speech received as more hawkish than expected.

"We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do," he said in a highly anticipated speech.

At 3.7 percent, inflation in the world's biggest economy is nearly double the Fed's target of two percent, and investors worry that high energy prices from the Iran war could persist as winter approaches.

"On the price-stability side of our mandate, the numbers are more concerning," Warsh said, even as he said he was "impressed" with US economic performance, with employment "doing well". (Reuters)


Edited by Edmond Fong