Asian Markets Decline Amid Rising Oil Prices and U.S.-Iran Tensions

Asian stock markets declined on Monday, with oil prices rising, after U.S. President Donald Trump warned Iran that "the clock is ticking" due to stalled negotiations aimed at ending the ongoing conflict.

In Tokyo, the Nikkei 225 fell 1% to 60,815.95, led by technology-related stocks. The index had reached an all-time intraday high above 63,000 last week.

Hong Kong's Hang Seng index dropped 1.4% to 25,596.68, while the Shanghai Composite edged 0.1% lower to 4,131.53, following weaker-than-expected retail data for April.

Oil prices rose after President Trump's warning to Iran. Brent crude, the international standard, gained 0.7% to $110.02 per barrel, while U.S. crude increased 0.8% to $106.31 per barrel.

The yield on the 10-year Japanese government bond surged to 2.8%, its highest level since the late 1990s, amid expectations of rising inflation due to higher energy costs.

Investors remain cautious about the situation in the Strait of Hormuz and its impact on global energy flows. The strait remains mostly closed, and the U.S. has imposed a sea blockade on Iranian ports since last month.

A recent drone strike on a United Arab Emirates nuclear power plant has added to concerns over potential escalation in the region.

U.S. officials had hoped that China could use its influence to help broker a peace agreement and reopen the strait. President Trump stated last week that Chinese President Xi Jinping expressed a willingness to assist in negotiating an end to the conflict.

The yield on the U.S. 10-year Treasury was around 4.60%, up from 4.47% last Thursday, reflecting investor concerns over the situation in Iran.

On Friday, the S&P 500 dropped 1.2% from the record it set the day before, the Dow Jones Industrial Average fell 1.1%, and the Nasdaq composite lost 1.5%.

In currency markets, the U.S. dollar rose to 158.86 Japanese yen from 158.62 yen, while the euro traded at $1.1635, up from $1.1622.