Asian stocks tumbled on Wednesday following a surge in crude prices caused by concerns about a wave of instability in the oil-rich Middle East and North Africa.

Tokyo's Nikkei dived 2.43 percent, or 261.65 points, to 10,492.38, its biggest loss since August 31, while Hong Kong's Hang Seng ended down 1.49 percent, or 347.76points, at23,048.66.

Shanghai edged down 0.18 percent, or 5.11 points, to 2,913.81, while Sydney's S&P/ASX 200 ended down 0.48 percent, or 23.2 points, at 4,803.2.

Seoul closed down 0.57 percent, or 11.06 points, at 1,928.24

Sentiment has been hammered as the price of crude sits a highs not seen since before the global downturn in 2008.

New York's benchmark crude oil futures contract shot back above $100 a barrel in Asian trade, having crossed the psychological threshold last week for the first time since October2008.

The contract for April delivery, West Texas Intermediate, rose to a high of $100.64 a barrel during the day before pulling back to $99.44 in the late afternoon, down 19 cents from the day before.

Brent North Sea crude for April traded at$l 14.64, down 78 cents.

Safe-haven gold was also riding high, closing at $1,428.70-$1,429.70 an ounce in Hong Kong, after striking a new record on the London Bullion Market of $1,434.50 on Tuesday.

Inflation concerns hit traders in Seoul as new figures showed prices rose at their fastest pace in 27 months in February fuelled in part by rising world food prices and Middle Eastern turmoil pushing up energy costs.

The Dow Jones Industrial Average fell 1.38 percent, the S&P 500 index dropped 1.57 percent and the tech-focused Nasdaq fell 1.61 percent.

The oil price rises hurt Asia's airlines, with Hong Kong's Cathay Pacific Airways falling 2.5 percent and Qantas Airways shedding 2.2 percent in Sydney.

All Nippon Airways dropped 3.1 percent in Tokyo and China Airlines fell by equal measure in Taipei.

A tighter monetary policy could spell a quicker-than-expected interest rate rise, which would make the dollar more attractive to investors.

The greenback was at 81.92 yen in Tokyo afternoon trade against 81.84 in NewYorklateTuesday.

The euro fetched $1.3752, compared with 1.3774. The single currency eased to 112.66 yen from 112.71.

In other markets:

Singapore closed down 1.31 percent, or 40.09 points, at 3,027.51. Kuala Lumpur closed down 0.20 percent, or 2.96 points, at 1,499.28. Gaming giant Genting slid 2.1 percent to 10.04 ringgit, budget carrier AirAsia dropped 6.3 percent to 2.40 and Petronas Gas climbed 4.2 percent to 11.80.

Bangkok edged down 0.69 percent, or 6.89 points, to close at 987.59.