Asian shares hit two-month lows on Monday as markets were forced to price in ever-loftier peaks for U.S. and European interest rates, slugging bonds globally and underpinning the dollar near multi-week highs.
Investors are braced for more challenging U.S. data including the closely watched ISM measures of manufacturing and services, the latter being especially important following January's startling spike in activity.
There are also at least six Federal Reserve policy makers on the speaking diary this week to offer a running commentary on the likelihood of further rate hikes.
China has manufacturing surveys and the National People's Congress kicks off at the weekend and will see new economic policy targets and policies, as well as a reshuffling of government officials.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.0%, having shed 2.6% last week. Japan's Nikkei (.N225) eased 0.2% and South Korea (.KS11) 1.2%.
S&P 500 futures firmed 0.1%, while Nasdaq futures edged up 0.2%. Strong data on spending and core prices saw the S&P 500 crack support at 4,000 on Friday and retrace 61.2% of this year's rally.
Fed futures now have rates peaking around 5.42%, implying at least three more hikes from the current 4.50% to 4.75% band, and some chance of 50 basis points in March.
Markets have also nudged up the likely rate tops for a bevy of other central banks, including the European Central Bank and the Bank of England.
