HONG KONG (AP) 鈥� Asian stocks mostly retreated and oil prices jumped on Monday after U.S. President Donald Trump warned Tehran that the 鈥渃lock is ticking鈥� as U.S.-Iran negotiations over a permanent end to the stall.
U.S. futures fell more than 0.6%.
Markets in Japan and South Korea pulled further back from their records. Tokyo鈥檚 Nikkei 225 fell 0.9% to 60,843.09, a decline led by technology-related stocks, after it reached all-time intraday high levels last week above 63,000.
The yield on the 10-year Japanese government bond surged to 2.8%, its highest level since the late 1990s, part of a shift toward higher yields as the Bank of Japan gradually raises interest rates and higher energy costs raise expectations of rising inflation. That鈥檚 up from around 2.55% just one week ago.
Seoul鈥檚 Kospi jumped 0.9% to 7,558.50 after trading lower earlier in the day. It crossed the 8,000 mark on Friday, supported by buying of technology shares driven by the boom in artificial intelligence, but later declined partly on profit-taking by investors.
Hong Kong鈥檚 Hang Seng lost 1.6% to 25,543.32. The Shanghai Composite index edged 0.1% lower to 4,132.24, after China reported weaker-than-expected retail data for April.
Australia鈥檚 S&P/ASX 200 declined 1.4% to 8,508.40.
Taiwan鈥檚 Taiex dropped 1.1%, while India鈥檚 Sensex fell 0.6%.
Oil prices rose after Trump warned Iran in a social media post that 鈥渢he Clock is Ticking, and they better get moving, FAST, or there won鈥檛 be anything left of them鈥� following a call with Israeli Prime Minister Benjamin Netanyahu.
Trump has and then backed off, so investors have remained cautious about the situation in the and how it is impacting global energy flows, including oil and gas. The strait is still mostly closed, and the U.S. has also imposed its own on Iranian ports since last month.
A drone strike over the weekend on a United Arab Emirates鈥� nuclear power plant added to worries over a potential escalation in the conflict.
Brent crude, the international standard, gained 1.9% to $111.31 per barrel. It was trading at roughly $70 a barrel in late February before the start of the Iran war. Benchmark U.S. crude was trading 2.3% higher at $107.83 per barrel.
鈥淩e-escalation risks are increasing,鈥� ING commodities strategists Warren Patterson and Ewa Manthey wrote in a research note. While there has also been a pick up on shipping activities over the past week around the strait, they said, 鈥渢his can change quickly.鈥�
The pair also noted that the oil market was reacting to the lack of tangible results on the Iran war after last week鈥檚 between Trump and Chinese President Xi Jinping in Beijing, even as the White House said both the U.S. and China had agreed that the Strait of Hormuz must remain open.
U.S. officials had hoped that Beijing could use its influence, given its economic ties with Iran, to help broker a peace agreement and reopen the strait. Trump said last week in an interview that Xi told him China in negotiating an end to the war. So far it’s been unclear how Beijing might do that.
The yield on the U.S. 10-year Treasury was at around 4.63%, up from 4.47% last Thursday and sharply higher than the nearly 4% level it was holding at before the Iran war.
On Friday, the benchmark S&P 500 dropped 1.2% from the record it set the day before. The Dow Jones Industrial Average fell 1.1% and the technology-heavy Nasdaq composite lost 1.5%.
In other dealings, the U.S. dollar rose to 159.02 Japanese yen from 158.62 yen. The euro was trading at $1.1626, up from $1.1622.
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AP Business Writer Stan Choe contributed.
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