Asian Stocks Fall as Oil Tops 106 Dollars, Yields Near High

Asian stocks mostly fell Monday as Brent crude topped $106 a barrel after President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz. Trump said talks with Iran would continue this week. The 30-year U.S. Treasury yield reached 5.5185%, near its highest since 2004 and up 27 basis points this month; 2-year yields rose 55 basis points. CME FedWatch showed about a 66% chance of another Fed hike in October. The Reserve Bank of Australia was expected to raise rates 25 basis points Tuesday. South Korea, China and India were among the hardest-hit; Hong Kong's Hang Seng rose about 0.6%. Katayama Satsuki said "the yen's undervaluation is problematic" after speaking with Scott Bessent. Bruce Kasman of JPMorgan said: "The global expansion appears to have entered a phase of broad-based strength rarely seen over the past two decades." CONTESTED: Brent prints differed at $106.49 versus $106.94; KOSPI falls ranged 0.6%–2.52% by source; Shanghai, Shenzhen and Nifty moves varied slightly. Source-set limitation: rated coverage was 1 left / 0 center / 0 right. U.S. inflation, GDP, manufacturing and employment data were due later in the week.