Asian Shares Retreat On Inflation, Rate Hike Concerns

(RTTNews) - Asian shares ended broadly lower on Monday as oil and global bond yields spiked amid rising U.S.-Iran tensions. A raft of Chinese data signaling slowing economic momentum in April also kept investors on edge.

Amid stalled peace talks, U.S. President Donald Trump has warned Iran the "clock is ticking" and there won't be anything left of Iran unless it agrees to a deal.

Iran issued a stark warning to Washington, with senior figure Mohsen Rezaei cautioning that escalating military pressure could turn the Sea of Oman into a "graveyard" for U.S. vessels.

"Our understanding is that a naval blockade is an act of war, and responding to it is our natural right, Rezaei said.

A drone strike caused a fire at a nuclear power plant in the United Arab Emirates and Saudi Arabia reported intercepting three drones, escalating regional tensions.

The U.S. dollar held its ground against major currencies on Fed rate hike expectations while gold edged up slightly to hold above $4,550 an ounce.

Brent crude futures held above $110 a barrel as the continued near-shutdown of the Strait of Hormuz kept supply concerns elevated.

China's Shanghai Composite index finished marginally lower at 4,131.53 as disappointing retail sales and industrial output data for April signaled deeper economic trouble.

Hong Kong's Hang Seng index slumped 1.11 percent to 25,675.18, with technology stocks and financials pacing the declines.

Japanese markets ended sharply lower as technology-related stocks succumbed to profit taking after recent strong gains.

The Nikkei average fell 0.97 percent to 60,815.95 as the 10-year Japanese government bond yield climbed to 2.80 percent at one stake, the highest level since May 1997 on inflation concerns and BoJ rate hike expectations. The broader Topix index settled 0.97 percent lower at 3,826.51.

Seoul stocks recovered from an early slide, with the Kospi index closing up 0.31 percent at 7,516.04. Shares of Samsung Electronics jumped 3.9 percent after the government stepped in to help avert a looming labor union strike.

Australian markets hit a seven-week low, with materials, industrial stocks and real estate trusts leading losses on concerns about the global economic outlook.

The benchmark S&P/ASX 200 fell 1.45 percent to 8,505.30 while the broader All Ordinaries index ended down 1.52 percent at 8,735.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index plunged 1.56 percent to 12,762.92, ending at a seven-week low after a survey showed New Zealand's services sector remained in contraction in April.

U.S. stocks fell from record highs on Friday as spiking energy prices and higher Treasury yields following combative comments from President Trump and Iran's Foreign Minister Abbas Araqchi revived inflation fears.

The yield on 10-year Treasury notes reached its highest level since May 2025 as Jerome Powels's term as Federal Reserve Chair came to an end and the much-hyped U.S.-China summit ended with no major breakthroughs on trade or tangible help from Beijing to end the Iran war.

The Dow dipped 1.1 percent, the tech-heavy Nasdaq Composite tumbled 1.5 percent and the S&P 500 gave up 1.2 percent.