Asian stock markets started the trading session slightly shaky with US stock futures declining on interest rate hikes.
S&P 500 futures were down 0.6% while Nasdaq Composite futures fell 0.7% and U.S. 10 -year bond futures lost 8 points.
In addition, tighter lockdowns in Shanghai added to investors' concerns about economic growth as well as the possibility of a recession.
Japan’s Nikkei futures traded 26,745 lower than cash which closed at 27,003 during Friday.
Barclays analysts argue that a series of interest rate hikes, hawkish comments behind weak economic conditions in China and Europe, as well as energy embargo plans from Russia as well as supply problems continue to be the focus.
It indirectly affected investor sentiment who were worried about the actions of central banks which had to raise rates despite sluggish growth.
Meanwhile, investors are seen waiting for the US consumer price report to be published on Wednesday, which is forecast to decline slightly and further strengthen the 50 basis point increase forecast by the Federal reserve (Fed) in June.
According to ANZ analysts, core inflation rose 0.4% in April and core consumer price index (CPI) hit 5.6% during the first quarter (1Q), and this worries the Fed which will force more aggressive action to ensure core figures reach at least 0.2%.
He added that the inflationary pressures faced not only affected the Fed but also became a major focus for the European Central Bank (ECB).
Currency summary, the aggressive outlook for interest rates has pushed the US dollar to a 20 -year high of 104.070 last week and closed at 130.72.
The euro was at $ 1.0534, slightly higher from its recent low of $ 1.0481 while the Japanese Yen was at 130.72 against the dollar.
Gold remained at $ 1,876 an ounce after it failed to maintain its safe haven trend recently.
