- In Asia, stocks and emerging-market currencies are falling on concerns that China may tighten Covid curbs in response to reported deaths, as well as investors weighing the outlook for US rate hikes.
- Hong Kong stocks led the decline, with the benchmark Hang Seng index falling more than 3%. The MSCI Asia Pacific Index fell to a one-week low, while US futures declined. The dollar gained ground against both G-10 peers and emerging-market currencies.
- On Saturday, China saw its first Covid-related death in nearly six months, and two more were reported on Sunday. A city near Beijing that was rumoured to be a test case for the removal of virus restrictions has closed schools, closed universities, and ordered residents to stay at home for five days.
- Treasury yields rose across the curve as demand for safe havens increased.
