Worries over the Middle East crisis were also weighing on sentiment and pushing oil prices up after US and Iranian forces exchanged fire, just hours after US President Donald Trump said a peace deal to reopen the Strait of Hormuz was close.
After a blistering AI-centred, tech-led rally since March, traders have been on edge this month as they contemplate a possible US rate increase, with surging inflation caused by the spike in crude costs putting pressure on the US Federal Reserve to act.
All eyes will be on the release later in the day of the crucial consumer price index, which is expected to come in at its highest level in more than three years.
That followed forecast-topping US jobs figures Friday that ramped up rate hike talk.
Crude jumped one percent Wednesday amid dimming prospects of a deal to reopen the Strait of Hormuz, through which a fifth of world oil passes.
They had fallen as much as five percent at one point Tuesday on optimism a deal would be struck.
Here in Hong Kong, the Hang Seng Index lost 123 points, or 0.5 percent, to open at 24,442.
Other Asian markets also opened in the red with Seoul — the poster child of the region’s surge this year — down more than three percent.
The Kospi swung more than eight percent in either direction on Monday and Tuesday following the US jobs figures.
Markets in Tokyo and Taipei were also well down, with Shanghai, Singapore and Wellington also opening lower.
Manila and Sydney rose, while Jakarta also gained as the rupiah strengthened following a surprise rate hike by the Indonesian central bank. (AFP/Xinhua)
