Asian stocks tumble as oil tops US$100, reviving rate hike fears

Asian stocks tumbled on Thursday as oil prices surged above the US$100 mark, reigniting concerns about potential interest rate hikes, according to wire reports. The jump in oil prices followed ongoing tensions between Iran and the United States in the strategic Strait of Hormuz, which supply a crucial route for Saudi oil. The conflict led to a surge in Brent crude to over US$101.94 and West Texas Intermediate to US$97.79, both record highs since May.

The price increase fueled speculation that central banks, including the Federal Reserve and European Central Bank, may need to raise interest rates to combat inflation. With the prospect of higher borrowing costs looming, investors sold off stocks across Asia, with major indexes in Tokyo, Hong Kong, and Sydney falling more than one percent each.

The situation is particularly concerning as the United States prepares to release key consumer price data, which could inform the Fed's decision on interest rate hikes. Meanwhile, Japanese gaming company Nintendo saw its shares drop by 5.5 percent following a poorly received showcase of new games, with analysts noting a lack of fresh, exciting titles.