Asian shares mostly end lower, Nikkei down 1.30%

Asian stocks closed mostly lower in thin trade on Monday, with mainland China, New Zealand and Malaysian markets closed for holidays.

Trade tensions returned to the fore as Beijing accused U.S. of violating Geneva trade truce over chip curbs and the Trump administration announced it will double the current tariff rate on steel and aluminum imports from 25 percent to 50 percent.

Escalating Russia-Ukraine tensions and disappointing manufacturing data from China, Japan and South Korea for May also kept investors on edge.

Oil prices jumped over 2 percent in Asian trade as Ukraine launched a major drone strike, destroying 40 key Russian aircraft, further reducing the prospects for an end to the fighting.

Gold also jumped more than 2 percent to trade above $3,350 per ounce as the dollar weakened against its major rivals, weighed down by weakening U.S. macroeconomic fundamentals.

Tech and EV stocks tumbled as the U.S.-China trade truce risked falling apart over China's slow-walking on rare-earth exports and the U.S. curbs restricting the sale of chip design software, chemicals, other products to China.

Investors also digested data that showed Chinese factory activity data contracted at a slower pace in May than the month prior.

Japanese markets tumbled as a stronger yen due to rising uncertainties about trade issues weighed on export-related shares such as automakers.

The Nikkei average fell 1.30 percent to 37,470.67 while the broader Topix index settled 0.87 percent lower at 2777.29.

Mitsubishi Motors, Honda Motor and Toyota lost 2-3 percent. Chip-related stocks also declined, with Advantest tumbling 3.8 percent and Tokyo Electron falling 1.7 percent.

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