- Following a new high in American inflation, which increased pressure on the Federal Reserve to tighten monetary policy, Asian stocks fell and bond yields rose.
- Across Asian markets, equities fell by more than 2%. Hong Kong tech shares fell more than 2.7%, weighing on the broader Hang Seng index.
- Futures in the United States fell, with the Nasdaq 100 contract falling 2% and the S&P 500 contract falling 1.6%. The falls follow steep losses on Wall Street, which contributed to the worst drop in global shares last week since October 2020.
- The yen fell to a key psychological level of 135 per dollar, edging closer to a 24-year low, as Japan's easy monetary policy clashed with developed-market peers hiking rates.
- Treasury yields rose across the curve, led by shorter maturities, with the two-year yield rising nine basis points to its highest level since 2007. Treasury yields on 30-year notes are lower than those on five-year notes, indicating concern that sharp Fed interest-rate hikes will cause a hard economic landing. In the wake of treasury moves, New Zealand's 10-year bond yield surpassed 4% for the first time since 2014.
- The dollar strengthened on haven demand amid a toxic combination of rising costs and slower growth. Risky currencies, such as the Australian dollar, fell. Oil, one of the commodities driving price increases, has retreated to around $118 per barrel.
