SYDNEY : Asian share markets started the week in a sober mood on Monday as fighting in Ukraine raged on with no sign of stopping, leaving investors clutching at hopes for an eventual peace deal.
Most share markets rallied last week in anticipation of an eventual peace deal on Ukraine, but it could take actual progress to justify further gains. MSCI's broadest index of Asia-Pacific shares outside Japan was flat. Japan's Nikkei was shut, but futures traded around 200 points above the cash close.
Policy makers have flagged a string of hikes ahead to take the funds rate to anywhere from 1.75per cent to 3.0per cent by year end. The market implies a 50-50 chance of a half point hike in May and an even greater chance by June. Higher Treasury yields have helped lift the U.S. dollar on the yen, where the Bank of Japan remains committed to keeping yields near zero. The dollar was up near its highest since early 2016 at 119.18 yen, having climbed 1.6per cent last week.
Joseph Capurso, head of international economics at CBA, noted flash manufacturing surveys from Europe would be a hurdle for the euro this week.
Source: Financial Digest (financialdigest.net)