Asian equities largely fell on Wednesday after technology stocks tumbled on Wall Street, while crude prices edged higher following new US strikes against Iran.

The US armed forces carried out the strikes after President Donald Trump promised retaliation, blaming Iran for downing an Apache helicopter that went down near the Strait of Hormuz on Tuesday morning.

Tehran pledged to reply, stating it "will leave no attack or threat unanswered".

The fresh escalation has cast doubt on hopes for a durable resolution to a conflict now exceeding three months, unsettling markets already shaken by swings in artificial intelligence-related shares.

Yet despite uncertainty around full reopening of the Strait of Hormuz, oil prices finished slightly lower in early Tuesday trading.

The front-month Brent crude contract and the US benchmark WTI each slipped about 0.3 percent at the time of writing, quoted at $91.20 and $87.90 per barrel.

"The situation remains highly volatile," ING commodities strategists Warren Patterson and Ewa Manthey noted.

"This once again demonstrates the difficulty Iran and the US face in working towards a sustainable ceasefire that allows for the free flow of vessels through the Strait of Hormuz," the analysts added.

They noted that seasonal demand stays robust, adding further upward pressure on prices.

Wall Street sell-off spreads to global markets

Major European indices showed mixed moves at the Tuesday open.

The Euro Stoxx 50 fell 0.3 percent while the broader Stoxx 600 rose around 0.3 percent in early deals.

Germany's Dax gained 0.25 percent, France's CAC 40 slipped 0.3 percent and the UK's FTSE 100 dropped 0.5 percent, whereas Italy's FTSE MIB advanced 0.4 percent.

Elsewhere, technology stocks led declines as investors fretted that higher interest rates could weigh on growth companies reliant on borrowing and future earnings.

Traders are monitoring US inflation figures due Wednesday, with forecasts pointing to the quickest annual rise in consumer prices in more than three years.

Robust US jobs data from last week fueled speculation the Federal Reserve could lift rates to tame inflation.

Markets also grew uneasy after a strong AI-led rally since March, with some questioning whether tech valuations have stretched too far ahead of SpaceX's planned IPO on Friday.

US futures pointed lower after losses among chipmakers on Wall Street, including Micron Technology, Advanced Micro Devices and Marvell Technology.

In Asia, South Korea's Kospi dropped 4.7 percent to 7,720.59 following a sharp gain the prior day. Samsung Electronics fell 5.8 percent while chipmaker SK Hynix lost 6.3 percent.

Japan's Nikkei 225 declined 1.4 percent to 64,524.84 after producer prices rose 6.3 percent in May from a year earlier, the fastest pace in more than three years.

SoftBank Group shares tumbled 8.9 percent given its heavy AI exposure, though Tokyo Electron climbed 5.3 percent.

Hong Kong's Hang Seng Index lost 1.1 percent to 24,296.62, while mainland China's Shanghai Composite eased 0.7 percent to 3,980.24. Chinese producer prices rose 3.9 percent in May, their quickest increase in nearly four years.

Australia's S&P/ASX 200 edged up 0.2 percent to 8,624.50. Taiwan's Taiex fell 1.6 percent and India's Sensex gained 0.6 percent.

On Wall Street, the S&P 500 declined 0.3 percent to 7,386.65 on Tuesday. The Dow Jones Industrial Average rose 0.2 percent to 50,872.11, while the Nasdaq composite fell 1 percent.

Micron Technology swung from an early 4 percent gain to a 10 percent drop before closing 1.4 percent lower. Marvell Technology fell 7.6 percent and AMD lost 3 percent.

Investors continue to watch key US inflation data due later this week, as higher energy prices tied to the Iran conflict raise fresh inflationary concerns.

In currency markets, the US dollar held near 160.36 yen while the euro ticked up to $1.1550 from $1.1543.

Gold fell 2 percent to $4,197.60 an ounce in early European trading.

In bond markets, yields on major European 10-year government bonds edged lower on Wednesday, while the benchmark US 10-year Treasury yield rose 2.3 basis points to 4.545 percent.