Volkswacht Bodensee - Stocks drop, oil climbs after fresh Trump warning to Iran

Trump's threat Sunday comes as negotiations have stalled and sporadic attacks in the region have continued, despite the United States and Iran agreeing to a truce in April.

The conflict has led to an effective blockade of the Strait of Hormuz, through which around 20 percent of global oil exports pass in peacetime.

The strait "remains meaningfully closed -- now approaching eleven weeks -- after the Trump-Xi summit in Beijing concluded without a breakthrough on reopening the waterway", MUFG's Michael Wan said Monday.

Tokyo shares closed one percent lower and Shanghai lost 0.1 percent, while Hong Kong ended down 1.1 percent.

China's consumer spending in April grew at the slowest pace in more than three years, data showed, a stark sign of the challenges Beijing faces to reignite domestic activity.

Traders have their eye on a meeting of Group of Seven finance ministers and central bank chiefs that kicks off in Paris, with bond selloffs in the spotlight, analysts said.

Then all eyes will be on quarterly results from US chip titan Nvidia, set for Wednesday, which will be scrutinised as investors question whether huge spending on AI data centres is justified by potential returns.

In midday deals Monday, Europe's stock markets mostly fell but London managed to edge up 0.1 percent, helped by rising share prices of energy companies.

Government bond yields have risen worldwide in recent trading sessions as more investors start to question if inflation will begin eroding economic growth while pressuring deficits.

"Global government yields rose sharply heading into the start of this week, as three forces collided: surging oil prices, fading hopes for a Strait of Hormuz resolution, and mounting fiscal concerns especially in the UK and US," Wan said.

But last week's talks on trade between China and the United States have offered "a degree of relief for Asian markets", he added.

The Seoul stock market, which has renewed with record highs in recent days thanks to the artificial intelligence spending boom, ended the day 0.3 percent higher.

In Tokyo, shares in memory chip maker Kioxia soared 16 percent following stellar quarterly results on Friday.

Kioxia, the world's third-largest producer of NAND flash memory chips, which are used as storage in AI data centres, has seen its stock surge nearly 300 percent over the past year.

The company has forecast an eye-watering 1.3 trillion yen ($8.2 billion) in operating profit for April-June, saying it is "riding the large wave of AI demand, which has led to record high revenue and profits".

- Key figures at around 1045 GMT -

London - FTSE 100: UP 0.1 percent at 10,208.12 points

Paris - CAC 40: DOWN 0.8 percent at 7,886.97

Frankfurt - DAX 30: UP 0.1 percent at 23,970.64

Tokyo - Nikkei 225: DOWN 1.0 percent at 60,815.95 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 25,675.18 (close)

Shanghai - Composite: DOWN 0.1 percent at 4,131.53 (close)

New York - DOW: DOWN 1.1 percent at 49,526.17 points (close)

Euro/dollar: UP at $1.1634 from $1.1620 on Friday

Pound/dollar: UP at $1.3356 from $1.3316

Euro/pound: DOWN at 87.11 pence from 87.25 pence

Dollar/yen: UP at 158.91 yen from 158.78 yen

Brent North Sea Crude: UP 0.9 percent at $110.24 a barrel

West Texas Intermediate: UP 0.8 percent at $106.31 a barrel

burs-bcp/ajb/rl

H.Gerber--VB