STOCKS | Asian Shares Fall As Oil Rises And Warsh Flags Inflation

Asian equity markets were mostly lower at the start of a new week as oil prices rose after the latest US attacks on Iran and hawkish comments from Federal Reserve chair Kevin Warsh lifted expectations of a US interest-rate hike, according to RTHK. In Hong Kong, the Hang Seng Index opened down 164 points, or 0.64 percent, at 25,420. The China enterprises index fell 46 points, or 0.55 percent, to 8,444, while the tech index slipped 19 points, or 0.42 percent, to 4,585. On the mainland, the Shanghai Composite Index opened down 25 points, or 0.65 percent, at 3,926. The Shenzhen Component Index lost 188 points, or 1.35 percent, to 13,764, while the ChiNext Index slipped 57 points, or 1.67 percent, to 3,367. In Tokyo, the Nikkei opened down 737 points, or 1.11 percent, at 66,405 before losses deepened to 1,072 points lower at one stage before the midday mark. In Seoul, the Kospi opened down 175 points, or 2.58 percent, at 6,613 before trimming losses to 133 points lower at one stage before noon. Warsh said fighting high inflation was a priority in a speech that markets read as more hawkish than expected. He said underlying inflation must move to the Fed's objective at a sufficient pace, and added that the numbers on price stability were more concerning, even as he said he was impressed with US economic performance and that employment was doing well. Inflation in the world's biggest economy stood at 3.7 percent, nearly double the Fed's 2 percent target.