Asian Stocks Slide as Hawkish Fed Bets Rekindle Rate Hike Fears

Asian equity markets declined on Monday following hawkish comments from Federal Reserve Chair Kevin Warsh. In his Jackson Hole address, Warsh emphasized that inflation has not slowed meaningfully and reaffirmed policymakers' commitment to returning inflation to their 2% target.

The remarks revived expectations for a US rate hike in September, weighing down sentiment across the region. Tech-heavy equity benchmarks in Japan and South Korea led the declines, while shares in China and Hong Kong also moved lower.

Oil prices rose sharply after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz, further contributing to the market's decline.