SYDNEY, NSW, Australia - Stocks in Asia opened the week in the red on Monday with all the major indices ending in negative territory.
There was some relief from lower bond yields, however, this may not last.
"Given the pace of the economic recovery and the Fed's apparent unwillingness to stand in the way of higher yields, we think long-term yields will rise again before long," Thomas Mathews, a markets economist at Capital Economics told Reuters Thomson Monday.
"Rapid economic growth, supported by reopening and accommodative fiscal policy, may disproportionately benefit the sectors of the stock market that are more sensitive to the health of the economy."
"And the composition of that growth is likely to be more skewed towards those sectors than it might have been during a typical economic expansion," Matthews added.
At the close on Monday, the Nikkei 225 in Japan was down 229.33 points or 0.77 percent at 29,538.73.
The Australian All Ordinaries traded 27.10 points or 0.37 percent lower at 7,225.20.
In Hong Kong, the Hang Seng, shed 245.52 points or 0.86 percent to 28,853.28.
China's Shanghai Composite dipped 37.73 points or 1.09 percent to 3,412.95.
The U.S. dollar was slightly higher against a basket of currencies. It rose against the euro to 1.1880 by the Sydney close Monday. The British pound inched down to 1.3723. The Japanese yen was little changed at 109.54. The Swiss franc eased to 0.9259.
The Canadian dollar was a fraction stronger at 1.2556. The Australian and New Zealand dollars both weakened, to 0.7616 and 0.7036 respectively.