Asian Stocks Fall as Fed Rate Hike Expectations and Oil Prices Surge

Asian and US stock futures declined on expectations of higher interest rates from the Federal Reserve. The Nikkei 225 in Tokyo lost 0.1% to 66,311.93, while Hong Kong's Hang Seng fell 0.1% to 25,566.99. In contrast, the Shanghai Composite index gained 0.9% to 3,986.30.

The US dollar fell against the Japanese yen and euro after Fed Chairman Kevin Warsh reinforced expectations of rate hikes to combat inflation. The yield on the two-year Treasury jumped to 4.35%, a sign that markets expect the Fed to raise rates soon.

The sudden escalation in tensions between the US and Iran led to a surge in oil prices, with Brent crude rising 3.8% to $91.40 per barrel and US benchmark crude increasing by 3.8% to $86.58 per barrel.