Asia stocks fall as tech slides, oil rises on Middle East tensions

Asian markets were lower on Wednesday, with technology shares leading the declines as investors pulled back on concerns over elevated valuations and the possibility of further U.S. interest rate increases. Oil prices climbed after U.S. and Iranian forces clashed, hours after President Donald Trump said a deal to reopen the Strait of Hormuz was close. Tech stocks, which had driven a rally since March on artificial intelligence enthusiasm, have come under pressure this month as the prospect of a U.S. rate hike and a jump in crude prices stoked inflation concerns. Traders are awaiting U.S. consumer price index data due later in the day, which is expected to show the highest reading in more than three years. Friday's stronger-than-expected U.S. jobs report has also reinforced debate over the rate path. Trump said he wants interest rates to fall but will leave the decision to Federal Reserve Chair Kevin Warsh, who has criticized his predecessor for not cutting enough. Analysts noted that higher borrowing costs weigh more heavily on technology companies, and that the current selloff has been accompanied by a shift in investor interest toward other sectors.