Asian markets slide on higher US rates, oil prices

Asian equities came under pressure on Monday as rising expectations of tighter US interest rates and higher oil prices dented investor sentiment, Mettis Link News reported. South Korea's KOSPI shed 2.52%, while China's Shenzhen Composite posted the steepest fall of the indexes cited, down 3.37%. Hong Kong's Hang Seng went against the trend with a 0.64% gain, according to CNBC market data.

Crude prices rose further as doubt about a potential US-Iran truce kept energy markets firm, with Brent futures up 2.1% at $106.49 a barrel and US crude 1.5% higher at $93.84. Washington reportedly rejected an Iranian offer to unblock the Strait of Hormuz, and further talks were expected this week. Reuters linked the diesel rally to limited refining capacity, which is adding to inflation concerns.

The 30-year US Treasury yield climbed to 5.5185%, approaching its strongest reading since 2004, while the dollar index touched a two-month peak of 101.39. Reuters noted that the 12-month forward price-to-earnings ratio of the FactSet Asia Market Index came down to 12.5 by late September, while the mean 10-year yield across Asia rose from 3.4% to 4.2%. Banks and insurers may gain from the higher-rate backdrop, whereas technology stocks face greater valuation pressure.