Asian shares hit two-month lows on Monday as markets were forced to price in ever-loftier peaks for U.S. and European interest rates, slugging bonds globally and underpinning the dollar near multi-week highs.
Investors are braced for more challenging U.S. data including the closely watched ISM measures of manufacturing and services, the latter being especially important following January’s startling spike in activity.
There are also at least six Federal Reserve policy makers on the speaking diary this week to offer a running commentary on the likelihood of further rate hikes.
China has manufacturing surveys and the National People’s Congress kicks off at the weekend and will see new economic policy targets and policies, as well as a reshuffling of government officials.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.0%, having shed 2.6% last week. Japan’s Nikkei (.N225) eased 0.2% and South Korea (.KS11) 1.2%.
China’s blue chips (.CSI300) were off 0.2%, while China Renaissance Holdings (1911.HK) bounced after the mainland boutique bank said its missing chairman is cooperating with Chinese authorities in an investigation.
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