Asian equity benchmarks are trading lower in the early deals on Monday as investors fretted ahead of this week's central bank meetings as well as Britain's June 23 referendum on whether to remain in the European Union. The US Federal Reserve, Bank of England, Swiss National Bank and the Bank of Japan will all meet this week. All are expected to hold monetary policy steady against a backdrop of caution about the global economic outlook as well as the impact about a possible ‘Brexit’. Stocks in Japan plunged as worries about a potential exit by the UK from the European Union left investors scrambling for safe haven assets, sending the Japanese yen stronger and bond yields lower yet again. Meanwhile, China’s Shanghai Composite declined as mainland markets traded for the first time since Wednesday after a holiday break. In China, Industrial production rose 6 percent from a year earlier in May, matching economists’ estimates. Retail sales climbed 10 percent, while fixed-asset investment increased 9.6 percent in the first five months of 2016, the slowest pace since 2000.
Nikkei 225 dropped 485.47 points or 2.92% to 16,115.89, Hang Seng dipped 534.29 points or 2.54% to 20,508.35, Taiwan Weighted contracted 178.60 points or 2.05% to 8,536.88, Shanghai Composite crumbled 22.93 points or 0.78% to 2,904.23, Jakarta Composite declined 23.88 points or 0.49% to 4,824.18, KOSPI Index slipped 33.40 points or 1.66% to 1,984.23, Straits Times decreased 41.36 points or 1.47% to 2,781.61, and FTSE Bursa Malaysia KLCI was down by 9.30 points or 0.57% to 1,631.92.