Asian Markets Fall Amid Fed Rate Hike Expectations, Oil Prices Soar

Asian markets declined on Monday following a speech by US Federal Reserve Chairman Kevin Warsh that reinforced expectations of an interest rate hike. The move would aim to combat inflation, but at the cost of short-term economic pain.

The S&P 500 and Dow Jones Industrial Average futures slipped 0.3%, while Tokyo's Nikkei 225 lost 0.4% to 66,164.66. Hong Kong's Hang Seng fell 0.4% to 25,479.52 and the Shanghai Composite index gained 0.4% to 3,967.94.

The US Treasury yield rose sharply following Warsh's speech, jumping to 4.35% from 4.22%. This marked a significant increase in the past few days, with longer-term yields also rising. The yield on the two-year Treasury closely tracks expectations of Fed moves.