EQUITIES

Asia-Pacific stocks were lower in Monday trade. The Nikkei 225 in Japan led losses among the region’s major markets as it dropped 2.10% while the South Korea’s Kospi dipped 1.51%.

Mainland Chinese stocks were also lower, with the Shanghai composite down 0.48% and the Hong Kong’s Hang Seng index slipped 1.32%.

Australian stocks also declined, with the S&P/ASX 200 was down 0.16% lower.

OIL

Oil prices slumped on Monday as surging cases of the Omicron coronavirus variant in Europe and the U.S. stoked investor worries that new restrictions on businesses to combat its spread may hit fuel demand.

The Brent now traded at $71.40 per barrel, and U.S. crude futures traded at $70.98 per barrel.

On Friday last week, the Brent futures ends at $73.52 a barrel, while the WTI crude oil prices closed to $70.86 per barrel.

CURRENCIES

The Fed's hawkish turn combined with safe-haven flows underpinned the U.S. dollar index near the highest since July of last year, at 96.609 on Monday, following a 0.7% jump on Friday.

The yields on U.S. 10-year notes were down at 1.370% and well below their 2021 top of 1.776%.

China cut its lending benchmark loan prime rate (LPR) for the first time in 20 months at its December fixing on Monday, largely in line with market expectations. The one-year LPR was lowered by 5 basis points to 3.80% from 3.85% previously, while the five-year LPR remained at 4.65%. The Chinese yuan pared earlier losses to trade flat.

Meanwhile, President Recep Tayyip Erdogan pledged to continue interest rate cuts that have made the Turkish lira the world’s worst performing currency over the past three months.

GOLD

Gold was looking firmer at $1,803.00 an ounce, having broken a five-week losing streak last week as equities slipped. U.S. gold futures slipped slightly to $1,802.90.

Spot silver shed 0.79% to $22.35 an ounce, platinum slipped 1.50% to $920.60, and palladium edged 5.42% lower to $1,688.00.

ECONOMIC OUTLOOK

Asian share markets fell on Monday as investors worried about the Omicron coronavirus variant and digested the Federal Reserve's decision to end its pandemic-era stimulus faster.

Fresh lockdowns in parts of Europe to stem the rapid surge of Omicron are unsettling investors and weighing on risk sentiment.

Traders also assessing the latest comments from U.S. Senator Joe Manchin, who left Democrats with few options for reviving Biden’s agenda after rejecting the roughly $2 trillion tax-and-spending package.