- Stocks in Asia fell as an unexpectedly good US jobs report raised the potential of future Fed rate hikes, while concerns over US-China geopolitical tensions weighed on confidence.
- The dollar surged on Monday after an indicator of its strength rose more than 1% on Friday, when payrolls increased and unemployment fell to a 53-yr low. This points to continuing US inflation and strengthens the case for additional rate hikes. South Korean stocks and futures contracts for US shares also fell.
- Hong Kong and mainland China stocks tumbled, with the Hang Seng index on track for its lowest closing in a month. Chinese stocks registered in the United States fell on Friday after the Biden administration chose to postpone US Secretary of State Blinken forthcoming trip to China due to a suspected Chinese surveillance balloon that was later shot down.
- After the Nikkei reported that the government had approached BoJ's Amamiya about succeeding BoJ's Governor Kuroda as head of the central bank, equities rose and the yen fell. While the Japanese government denied the claim, investors believe the current ultra-easy monetary policy will be extended if one of its architects succeeds BoJ's Governor Kuroda.
