Asia report: Most markets lower amid ongoing Middle East tensions

In Japan, the Nikkei 225 was down 0.23% at 21,416.79, as the yen weakened 0.24% against the dollar to last trade at JPY 107.97.

Of the major components on the benchmark index, automation specialist Fanuc was up 0.82%, fashion firm Fast Retailing rose 0.03%, and technology conglomerate SoftBank Group added 2.91%.

Shares in brewing giant Asahi Group Holdings fell 8.87%, after the company said it would issue up to JPY 200bn of shares to fund the purchase of the Australian operations of Anheuser-Busch InBev.

The broader Topix index was down 0.49% by the end of trading in Tokyo, to close its day at 1,556.37.

In political developments in Japan, prime minister Shinzo Abe’s incumbent coalition won a majority in the country’s upper house following elections on Sunday.

That led to some analysts predicting that Abe would feel less pressure to pursue a hard line approach in ongoing trade tensions with South Korea, which had escalated in the weeks leading up to the election.

On the mainland, the Shanghai Composite lost 1.27% to 2,886.97, and the smaller, technology-heavy Shenzhen Composite was 1.79% lower at 1,532.43.

The tech-focussed STAR market opened for trading in Shanghai on Monday, with shares in the first tranche of 25 companies rocketing ahead after a huge oversubscription.

South Korea’s Kospi was 0.05% weaker at 2,093.34, while the Hang Seng Index in Hong Kong slid 1.37% to 28,371.26.

Both of the blue-chip technology stocks were in the green in Seoul, with Samsung Electronics 0.85% higher, and chipmaker SK Hynix ahead 2.08%.

Korean carmaking giant Hyundai Motor was in the red, however, slipping 1.12%.

Geopolitical tensions were front and centre at the start of the session, after Iran seized a British-flagged oil tanker in the Strait of Hormuz on Friday.

The Islamic Republic claimed that the vessel was “violating international regulations”.

Those developments saw oil prices continue to rise, with Brent crude last up 1.3% at $63.29 per barrel, and West Texas Intermediate growing 1.15% to $56.41.

“Oil gained at the start of the week, as tensions in the Straits of Hormuz intensified after Iran seized a British oil tanker,” said London Capital Group senior market analyst Ipek Ozkardeskaya.

“The UK attempted to ease tensions through diplomatic talks.”

In Australia, the S&P/ASX 200 was off 0.14% at 6,691.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 outperformed its regional peers, rising 0.7% to settle at a record high close of 10,824.69.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.05% at AUD 1.4194, and the Kiwi advancing 0.24% to NZD 1.4749.