Asian Markets Trade Mostly Lower

Asian stock markets are mostly lower on Monday, despite the positive cues from Wall Street on Friday, amid surging crude oil prices after the critical East-West pipeline was shut by Saudi Arabia following drone attacks and talks between Iran and the GCC about a possible reopening of the Strait of Hormuz were postponed. The pipeline provided an alternative route around the Strait of Hormuz. Asian markets closed mostly lower on Friday.

Hotter-than-expected U.S. inflation also reinforced the case for higher rates. Markets are currently pricing in an 86% probability that the US Fed will raise its policy rate by 25 basis points on Wednesday, with another rate hike expected later this year.