Asian equites closed on heavy loss while investors rushed to safe asset dollar amid aggressive monetary tightening and worsening COVID-19 lockdowns in China.
Shares in Mainland China, Hong Kong, South Korea, Thailand and Japan closed higher on loss above 1%. The MSCI Asian Index ex Japan dipped by over 2.90%.
The dollar index touched two-year high on Monday against its major currency peers. U.S. futures S&P500 and Nasdaq100 tumbled at least 1.5% each. Most Treasuries fell, with the five-year rate jumping to the highest since 2008.
Volatility remains high in global markets on growth, consumer prices and war risks. Inflation data this week from the U.S. and elsewhere could drive bond-market swings.
Chinese Premier Li Keqiang warned the nation’s employment situation had turned grave because of Covid restrictions.
The short-term outlook for stocks “is still messy and there may be more downside as markets worry about a significant economic slowdown or ‘hard landing’ and aggressive interest-rate hikes,” Diana Mousina, senior economist at AMP Investments, wrote in a note as reported by Bloomberg.
Oil dipped amid supply risks from Russia and demand slump in China. The WTI is trading around $107 a barrel while the Brent is trading around $110 a barrel.