Warsh's Hawkish Comments Send Asian Stocks Tumbling

Asian stocks suffered a sharp decline on Monday, paring their losses to 0.6% as MSCI's Asia Pacific equities gauge fell up to 1%. Technology shares led the losses with chipmakers Samsung Electronics Co. and SK Hynix Inc. among the decliners.

The dollar traded in a narrow range against major peers after its biggest gain in about a month on Friday following Warsh's hawkish comments, which strengthened bets on an interest-rate hike next month to 60%. US stock-index futures retreated as well.

Brent crude climbed 1.4% to $89.30 a barrel due to escalating Middle East tensions after the US military struck Iranian rocket launchers that were preparing to send mines into the Strait of Hormuz, ending weeks of relative calm.