Asian Shares Decline On US Rate Hike Uncertainty

(RTTNews) - Asian stocks fell broadly on Monday as robust U.S. jobs data released on Friday fanned fears of more interest rate hikes to slow economic activity and cool inflation.

According to the Federal Reserve, a strong labor market would lead to excessive wage growth which, in turn, would lead to inflation pressures.

Chinese and Hong Kong stocks slipped into the red after the Biden administration decided to postpone Secretary of State Antony Blinken's upcoming trip to China in response to the Pentagon's discovery of an alleged Chinese spy balloon, that was later shot down.

The benchmark Shanghai Composite index dropped 0.76 percent to 3,238.70 while Hong Kong's Hang Seng index plunged 2.02 percent to close at 21,222.16, dragged down by property and technology stocks.

Japanese shares rose as the yen weakened by almost 1 percent on a Nikkei report that Masayoshi Amamiya was approached by the government for the role of Bank of Japan Governor.

The Nikkei average climbed 0.67 percent to 27,693.65 while the broader Topix index added 0.45 percent to close at 1,979.22. Mobility supplier Denso Corp rallied 3.1 percent after unveiling its third quarter financial results.

New Zealand markets were closed for Waitangi Day holiday. Australian markets fell modestly as investors awaited the RBA's policy meeting on Tuesday for direction.

Investors also digested weak data showing that Australian retail sales fell for the first time in a year last quarter.

The benchmark S&P/ASX 200 slipped 0.25 percent to 7,539 and the broader All Ordinaries index ended 0.33 percent lower at 7,745.90.

Gold miners led losses, with Northern Star Resources and Regis both falling around 1 percent after bullion prices hit a three-week low on Friday following stellar monthly job figures. Newcrest Mining soared 9.3 percent on news of a potential bid for the company.

Furniture retailer Nick Scali slumped 13 percent after reporting a 70 percent rise in its annual profit.

Seoul stocks ended sharply lower, with the Kospi average closing down 1.79 percent at 2,438.19.

U.S. stocks fell on Friday and bond yields climbed as a blockbuster jobs report revived worries about the interest-rate outlook.

Non-farm payroll employment soared by 517,000 jobs in January while economists had expected an increase of 185,000 jobs. The jobless rate slipped to a multi-decade low of 3.4 percent from 3.5 percent.

Meanwhile, earnings from mega tech companies showing softening sales growth offset upbeat service sector data.

The Dow eased 0.4 percent, while the S&P 500 lost 1 percent and the tech-heavy Nasdaq Composite tumbled 1.6 percent after posting strong gains during the previous three straight sessions.