BEIJING - Asian markets swung Tuesday, with traders trying to gauge the outlook for the US economy as they price in more interest rate hikes than previously feared.
With Wall Street closed Monday for Presidents' Day there were few catalysts for regional investors, with focus on the release later in the week of minutes from the Federal Reserve's most recent policy meeting.
After data this month showed the jobs market continues to boom and prices continue to rise well above the Fed's target, several Fed officials have lined up to warn borrowing costs will need to go much higher for longer.
Some have even suggested they were open to lifting rates 50 basis points next month, twice as much as expected by markets.
That has dealt a blow to hopes the central bank would stop hiking soon and even begin cutting rates before the end of the year, while the prospect of tighter policy has fanned fears of a recession.
In early trade, Asian markets were mixed.
Hong Kong dipped along with Tokyo, Sydney, Taipei, Manila and Wellington, while Shanghai, Seoul, Singapore, Jakarta and Bangkok edged up.
After enjoying a strong January, markets have stuttered this month as hopes for a rate cut subside, while SPI Asset Management's Stephen Innes said dealers were also still assessing China's reopening.
Oil prices were also mixed as worries about higher interest rates and a possible recession played off against hopes that China's reopening will fuel a surge in demand.