Asian stock markets are mostly lower on Monday, following Wall Street’s mixed signals on Friday, dragged down by energy stocks and materials amidst falling crude oil prices.
Traders are also particularly worried that active monetary tightening by the Fed to cool inflation could spur a global economic slowdown.
Meanwhile, US President Joe Biden stated that a recession in the United States is not unavoidable and that the country is “in a stronger position than any other nation in the world to combat inflation.”
The Nikkei 225 remained above the 25,600 level on Monday, with technology, energy stocks and materials leading the declines, even as traders remain concerned about the economic impact of aggressive monetary policy tightening.
In mainland China, the Shanghai Composite closed slightly lower.
The Hang Seng index in Hong Kong rose 0.4 percent, with shares of life insurer AIA rising 1.4 percent.
In choppy trading, the Australian stock market is slightly lower, with weakness throughout many sectors, especially energy stocks and technology as crude oil prices fall.
Crude oil prices fell sharply on Friday as investors worried about a potential global economic downturn as several central banks tightened their policies.
The US dollar index, which measures the value of the greenback against a basket of currencies, was at 104.373 after a recent rebound from levels below 104.
Bitcoin fell 3% to $19,897 after a sharp rise over the weekend amid reports about a single large buyer.
Gold has been stuck in a tough sideways pattern for a span of a month or so due to the strength of the dollar. It was last trading at $1,841 per ounce.
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