Asian Stocks Slide as Inflation Concerns Intensify Ahead of Jackson Hole Meeting

Asian stock markets mostly declined on Monday as investors remained cautious ahead of a key gathering of top US economic officials at Jackson Hole later this week. The US inflation report for July is due Wednesday, and the personal consumption expenditures (PCE) price index is the Federal Reserve's preferred inflation gauge.

The PCE price index has indicated that inflation remains above 3%. The Fed has struggled to bring inflation back to its 2% target. Bond markets have also remained under pressure, with rising Treasury yields prompting an unusual intervention by the US Treasury Department last week.

US stock futures edged lower on Monday, while Japan's Nikkei 225 fell 0.5% to 65,678.45 and South Korea's Kospi dropped 3.5% to 6,664.36. Hong Kong's Hang Seng Index declined 2.1% to 25,465.23 and the Shanghai Composite lost 0.7% to 3,877.30.

However, Australia's S&P/ASX 200 bucked the regional trend, rising 0.5% to 9,107.40. The uncertainty over oil tanker movements out of the Persian Gulf also remained a concern, with Brent crude falling 1.4% to $93.10 a barrel and US benchmark crude dropping 1.6% to $85.63.