Asian stocks slid on Thursday as the biggest wave of attacks on shipping in the widening war in the Middle East kept oil prices above US$100 a barrel, leaving investors nervous ahead of US inflation data that will influence monetary policy.

In Hong Kong, the benchmark Hang Seng Index opened down 289 points, or 1.15 percent, at 24,985.

The tech index was 61 points, or 1.39 percent, lower at 4,359 while the China Enterprises Index slipped 99 points, or 1.19 percent, to 8,269.

On the mainland, the Shanghai Composite Index opened down 12 points, or 0.31 percent, at 3,939.

The Shenzhen Component Index was 82 points, or 0.6 percent, lower at 13,641 while the ChiNext Index fell 30 points, or 0.91 percent, to 3,324.

Brent crude futures edged up to US$101.40 per barrel in early trading, having broken through the psychologically crucial US$100 mark on Wednesday for the first time since July as traders grappled with the prospect of inflationary pressure.

"I think that Brent pushing through the US$100 level will be seen by many in the market as a significant event in the current scheme of things," said Nick Twidale, chief market strategist at ATFX Global, who expects global yields to push higher as the market adjusts to higher inflation in the coming months.

"This move now may convince some market participants that may have been holding fire on certain positions, with hopes of a peace deal in the Middle East, to now hit the trigger as the realities of a longer conflict kick in."

In Tokyo, the Nikkei's losses widened to 567 points at one stage before the lunch hour after the 225 benchmark had opened 374 points, or 0.57 percent, lower at 64,768.

In Seoul, the Kospi too sank deeper to be 106 points at one stage before noon after opening 12 points, or 0.18 percent, down at 7,038.

US producer price and consumer price inflation reports are due later on Thursday and Friday, respectively, with analysts saying the data will play a key role in whether the Fed hikes rates at its September 15 to 16 meeting. (Reuters & Xinhua)


Edited by Aaron Tam