Asian stocks and the dollar fell on Monday, tracking a sharp selloff on Wall Street as concerns over inflation and Federal Reserve policy pressured global markets. Investors moved cautiously, seeking clarity on the central bank’s next steps while grappling with renewed volatility.
Equity markets across Japan, South Korea, and Hong Kong opened lower, with tech and consumer stocks bearing the brunt of the losses. The MSCI Asia-Pacific Index slipped, mirroring a downturn in U.S. equities, where the S&P 500 suffered its worst single-day decline in weeks amid rising Treasury yields.
The dollar weakened against major peers, giving up some of last week’s gains as traders reassessed expectations for rate hikes. The yen strengthened slightly, though analysts warn that any sustained rally could be limited unless there’s a shift in the Fed’s messaging.
Meanwhile, China’s markets remained under pressure, with investors wary of sluggish economic data and regulatory uncertainties. The Hang Seng Index edged lower, dragged down by tech giants, while mainland indexes saw muted movements.
U.S. Treasury yields continued their upward trajectory, reinforcing concerns that borrowing costs will remain elevated. The 10-year yield hovered near recent highs, further dampening risk appetite across global markets.
With Fed officials set to speak later this week, markets are bracing for potential shifts in guidance. Investors will also watch for upcoming U.S. economic data, which could offer fresh clues on inflation and monetary policy direction. Until then, caution is likely to dominate trading sentiment in Asia and beyond.
