Asia stocks edge lower as South Korea, Japan benchmarks decline

Asian markets slipped as geopolitical tensions rose, driving up oil prices and reigniting concerns about inflation. The MSCI Asia Pacific Index fell 0.2 percent, with South Korean and Japanese stock benchmarks declining. The S&P 500 futures remained flat as of 9:04 am Tokyo time, while Hang Seng futures in Hong Kong dropped 0.4 percent, Japan's Topix index fell 0.3 percent, and Australia's S&P/ASX 200 index declined 0.4 percent.

The S&P 500 Index itself fell 0.3 percent on Monday, while US chip stocks saw a slight increase. Nvidia announced a $3.5 billion investment in MediaTek, further strengthening their partnership. Meanwhile, Brent crude oil prices surged past $91 a barrel following new Middle East fighting. The US and Iran exchanged strikes for the first time in months, with American forces attacking an island in the Strait of Hormuz and Iran responding by striking the United Arab Emirates and Jordan.

Higher energy costs pushed US Treasury yields up by three basis points to 4.75 percent during New York trading hours. Tensions in the Middle East dampened hopes for normalizing shipping through the Hormuz Strait, keeping oil prices elevated and adding to inflation worries. Market participants are tracking geopolitical volatility and potential seasonal volatility, keeping an eye on the upcoming employment report and Friday's US payrolls data.