Asian Stock Markets on Concerning Turbulence as Chinese Yen Touched Near Six-Year Low

Asian share markets started the week in a cautious mood on Monday as investors clung to hopes for an eventual peace deal in Ukraine, but the fighting raged on with no sign of stopping.

Turkey`s foreign minister said on Sunday that Russia and Ukraine were nearing agreement on "critical" issues and he was hopeful for a ceasefire.

Most share markets rallied last week in anticipation of an eventual peace deal on Ukraine, but it could take actual progress to justify further gains.

BofA`s global fund manager survey had a bearish tinge with cash levels the highest since April 2020 and global growth expectations since the financial crisis of 2008.

Long oil and commodities were the most crowded trade, and vulnerable to a pullback.

Trade was sluggish with Japan on holiday, leaving S&P 500 stock futures and Nasdaq futures little changed. MSCI`s broadest index of Asia-Pacific shares outside Japan was also flat.

Japan`s Nikkei was shut, but futures traded around 300 points above the cash close.