Asian equity benchmarks are trading lower in the early deals on Monday, on increased risk aversion as comments from some Federal Reserve officials reignited worries about a near-term US interest rate hike. Investors are worried that global central banks may be nearing an end to their easy monetary policies. The fall in crude oil prices also dampened investors’ sentiment. Meanwhile, Japanese shares slumped following a selloff in global markets, amid speculation central banks are questioning the rationale for keeping interest rates low for longer. Among the other Asian markets, Malaysia, Singapore and Indonesia are closed in observance of Eid-ul-Adha.
Nikkei 225 dipped 324.05 points or 1.91% to 16,641.71, Hang Seng dropped 680.33 points or 2.82% to 23,419.37, Taiwan Weighted decreased 83.49 points or 0.92% to 8,970.20, KOSPI Index contracted 40.45 points or 1.98% to 1,997.42, and Shanghai Composite was down by 63.73 points or 2.07% to 3,015.13.