Asian equities mostly declined as Brent crude gained nearly 2% to above $107 a barrel after Donald Trump rejected Iran's proposed seven-day truce, diminishing hopes for a prompt reopening of the Strait of Hormuz. US and Iranian officials remain divided over the timing of concessions in negotiations to end the fighting and restore shipping through the waterway, while high oil prices have revived concerns over inflation and another Federal Reserve rate increase. India's BSE Sensex fell about 0.8% to 72,189 and the rupee weakened nearly 0.2% to 96.1450 per dollar amid foreign outflows, elevated Treasury yields and a stronger dollar, despite stronger-than-expected August industrial output. The 10-year US Treasury yield rose above 5.27%, its highest level in 19 years, while Australia's central bank lifted its key rate to 4.6% as fuel costs added to inflation pressure.