- Shares in Asia-Pacific declined on Monday, as multiple major indexes regionally dropped at least 3% each.
- Looking out into the rest of the week, a slew of Chinese economic data including industrial production and retail sales for May is set to be out on Wednesday.
- The U.S. Federal Reserve is also expected to announce its interest rate decision later this week.
SINGAPORE — Shares in Asia tumbled on Monday, as major markets in the region saw sharp losses and the dollar-yen hovered around the 135 level.
South Korea's Kospi fell 3.52% to finish the trading day at 2,504.51, led by tech shares like Samsung Electronics which declined 2.66% while Kakao was down by 4.49%.
Worries surrounding mainland China's Covid situation may have further weighed on Asia-Pacific investor sentiment on Monday. Beijing city suspended offline sports events, delayed return to schools and tightened other controls, just days after loosening them.
MSCI's broadest index of Asia-Pacific shares outside Japan fell about 2.8%.
The losses in Asia came as the Japanese yen weakened as low as 135.17 per dollar on Monday, before recovering from some of those losses. The Japanese currency last changed hands at 134.42 against the greenback, but was still weaker compared to levels below last week's 132 level against the dollar.
U.S. Treasury yields were higher in the afternoon of Asia trading hours. The benchmark 10-year Treasury note yield climbed to 3.227% while the yield on the 2-year Treasury surged to 3.2056%. The two edged closer to an inversion — often seen as a potential recession signal.
In comparison, the yield on the 2-year Japanese Government Bond last stood in negative territory at -0.044%.
"Dollar-yen, I think if you look at the 2-year U.S. Treasury-JGB yield differentials, I think it's widening … especially with 10-year yields going up to above 3 and 3.2 levels or so,"