Asia shares mostly lower as investors mull likely rate hike

TOKYO (AP) — Asian shares were mostly lower Tuesday following a national holiday in the U.S, while oil prices surged following an attack on an oil facility in the capital of the United Arab Emirates that killed at least three people.

Benchmark U.S. crude rose $1.53, or 1.8%, to $85.35 a barrel in electronic trading on the New York Mercantile Exchange. It gained $1.70 to $83.82 per barrel on Monday.

Brent crude, the basis for pricing international oil, added $1.20 to $87.68 a barrel.

Satellite photos obtained by The Associated Press on Tuesday appeared to show the aftermath of the attack, which was claimed by Yemen’s Houthi rebels.

Share benchmarks fell in Hong Kong, Tokyo, Seoul and Sydney but rose in Shanghai. U.S. futures declined, while the yield on the 2-year Treasury rose above 1%, adding to expectations the Federal Reserve will soon raise rates to counter inflation.

The Bank of Japan wrapped up a two-day policy meeting with no major changes. Its benchmark interest rate remains at a longstanding minus 0.1%.

The super-easy monetary policy of the Japanese central bank is expected to stay unchanged for the time being, as the nation grapples with surging cases of COVID infections set off by the omicron variant.

The recent sudden increase in reported cases is likely to crimp economic activity. Japan, which has not had any pandemic lockdowns, has gone through periods of restrictions to curb the spread of COVID-19, mostly having restaurants and bars close early. Such restrictions are expected to expand this week to about a third of the nation, including Tokyo.

Japan’s benchmark Nikkei 225 fell 0.3% to 28,257.25. Australia’s S&P/ASX 200 lost 0.1% to 7,408.80. South Korea’s Kospi dropped 0.9% to 2,864.24. Hong Kong’s Hang Seng slipped 0.6% to 24,061.46, while the...