Asian markets slide on alarm over Mideast tensions

Shares skidded in Asia on Monday, with Tokyo's Nikkei 225 index down 2% on concern over escalating tensions in the Middle East following the killing by a US air strike of an Iranian general.

Shares also fell in most other Asian markets, apart from in China, where the Shanghai Composite index advanced following a report that Chinese officials plan to visit Washington next week for the signing of a trade deal with President Donald Trump.

Asian economies depend heavily on oil from the Middle East, and oil prices surged, with US crude up 2.4% and Brent crude up nearly 2.7%. Stocks fell broadly on Wall Street on Friday, ended a five-week winning streak for the S&P 500 a day after the benchmark index hit its latest record high.

The Nikkei 225 index in Japan slid 2% to 23,195.88 while Hong Kong's Hang Seng index lost 0.7% to 28,261.56. In South Korea, the Kospi lost 1% to 2,154.24 and the S&P ASX 200 declined 0.3% to 6,716.20. The Shanghai Composite index rose 0.6% to 3,101.98. India's Sensex slipped 1% to 41,038.19. Shares also fell in Taiwan and Southeast Asia.

The dollar fell to 108.07 Japanese yen from 108.09 yen on Friday. The euro rose to $1.1166 from $1.1159.

Technology, financial and health care stocks accounted for much of the selling Friday on Wall Street. Companies that rely on consumer spending also fell, along with airlines. Several energy stocks got a boost from higher oil prices. Defense contractors also notched gains.

The S&P 500 dropped 0.7% to 3,234.85, ending with a 0.2% loss for the week. The Dow Jones Industrial Average fell 0.8%, to 28,634.88. The Nasdaq lost 0.8% to 9,020.77 and the Russell 2000 index of smaller company stocks gave up 0.4% to 1,660.87.

The major stock indexes were coming off record highs after closing out 2019 earlier in the week with the best annual performance by the S&P 500 and Nasdaq since 2013.

Bond prices rose. The yield on the 10-year Treasury fell to 1.78% from 1.79% late Friday, a big move. Lower bond yields bring down the interest rates that banks charge for mortgages and other consumer loans, making them less profitable.