Shares skid in Asia as oil, yields stay high

Asian share markets fell on Monday as a fresh round of clashes between Washington and Tehran lifted oil prices, according to Business Recorder. Brent crude climbed 1.4% to $89.38 a barrel after US forces struck two Iranian launchers on Larak island on Sunday. Iran reportedly retaliated with strikes on American troops based in Jordan, citing Fox News.

Bond yields stayed elevated as traders lifted the chance of a September US rate increase to 57%, after Federal Reserve Chair Kevin Warsh stressed on Friday that the central bank still had work to do on inflation. Two-year Treasury yields held at 4.36% following a near 12 basis point jump on Friday. JPMorgan's Michael Feroli still expects a hike in December, though he called the September meeting a live possibility.

Japan's Nikkei fell 2.1% and South Korean shares dropped 2.4%, while MSCI's regional gauge excluding Japan dropped 0.7%. The yen slipped past 160 per dollar on Friday, and Treasury Secretary Scott Bessent described its decline as contained. Gold was little changed at $4,454 an ounce after a 3.2% drop on Friday as yields climbed.