Asian stock markets fell sharply on Monday after a heavy sell-off in major technology shares dragged Wall Street to its worst day in months, while growing expectations of a possible U.S. interest rate hike added to investor concerns.
Japan's benchmark Nikkei 225 dropped 4.5 percent to 63,604.15. The decline came after the Japanese government revised its first-quarter annual economic growth rate to 1.8 percent from an earlier estimate of 2.1 percent. Despite the drop, the Nikkei remains more than double its level from five years ago.
Oil prices jumped after Israel carried out airstrikes early Monday targeting central and western Iran in response to missile attacks. Iranian state media reported explosions in Isfahan, Tabriz and Tehran.
The latest escalation comes despite U.S. and Iranian negotiators reaching a preliminary agreement last week to extend a ceasefire. However, the deal has yet to be finalized, and the renewed violence has raised doubts about efforts to end the conflict.
International benchmark Brent crude rose $4.55 to $97.64 per barrel, while U.S. benchmark crude gained $4.17 to $94.71 per barrel.
Elsewhere in Asia, South Korea's Kospi plunged 8.2 percent to 7,493.34. Shares of Taiwan's Taiex index declined 3.5 percent.
Hong Kong's Hang Seng Index fell 1.7 percent to 24,527.22, while China's Shanghai Composite Index dropped 1.8 percent to 3,955.72.
Markets in Australia were closed for the King's Birthday public holiday.
Analysts said the latest downturn reflects concerns that technology stocks, particularly those linked to artificial intelligence, may have risen too far too quickly.
On Friday, Wall Street closed sharply lower. The S&P 500 fell 2.6 percent to 7,383.74, marking its biggest one-day decline since October. The Dow Jones Industrial Average dropped 1.4 percent to 50,866.78, while the Nasdaq Composite slid 4.2 percent to 25,709.43.
Investor sentiment was hurt by a stronger-than-expected U.S. jobs report showing the economy added 172,000 jobs in May. The data reinforced expectations that the U.S. Federal Reserve could raise interest rates later this year.
Following the report, yields on U.S. government bonds rose. The yield on the 10-year Treasury note increased to 4.54 percent from 4.50 percent, while the two-year Treasury yield climbed to 4.16 percent from 4.04 percent.
The Federal Reserve has kept rates unchanged in recent months while assessing the impact of inflation and trade-related pressures. Concerns over global energy supplies have also increased as the conflict involving Iran continues to disrupt oil shipments through the Strait of Hormuz.
In currency trading, the U.S. dollar edged up to 160.27 Japanese yen from 160.25 yen, while the euro rose slightly to $1.1522 from $1.1515.