Asian stocks decline as oil surge fuels risk aversion; currencies sag

Regional currencies remained under pressure against the dollar as higher oil prices stoked inflation concerns and lifted demand for safe-haven assets

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Asian markets traded mostly weaker on Thursday, as an oil-driven bout of risk aversion cut short a two-day rebound, though some bourses trimmed losses as investors assessed policy signals and the fallout from Middle East tensions.

Regional currencies remained under pressure against the dollar as higher oil prices stoked inflation concerns and lifted demand for safe-haven assets.

The Philippine peso led declines, down 0.5 per cent, while the Malaysian ringgit slipped O.4 per cent, but remained the region's best performer so far this year.

The Indian rupee weakened 0.3 per cent and hovered near record lows, with suspected central bank intervention helping limit further losses after the currency hit a fresh low earlier in the session.

The Indonesian rupiah fell 0.2 per cent, the South Korean won lost 0.3 per cent, the Singapore dollar eased O.I per cent, the Taiwan dollar weakened 0.4 per cent, while the Thai baht firmed O.I per cent.