Asia Stocks Tumble Amid Hike Bets and Oil Price Surge

Asian stock markets declined on Monday as investors reacted to increased expectations of a Federal Reserve rate hike. Fed chief Kevin Warsh's remarks at the Jackson Hole symposium in Wyoming were seen as a catalyst for the sell-off, as he signaled that stubborn inflation could require further action.

Warsh noted that inflation at 3.7 percent, nearly twice the Fed's 2 percent target, remained concerning and suggested current financial conditions may not be restrictive enough to bring down inflation.

The comments pushed up US Treasury yields and the dollar on Friday, while all three major Wall Street indexes ended lower. Gold prices also declined as expectations of higher interest rates grew.