In today’s trading session, Asian shares fell sharply in anticipation of a crucial US inflation report released on Friday that may signal the future direction of interest rates. 

Major Asian indices dropped by over 1%, while oil prices and US futures also experienced declines. This week’s primary focus for markets is the upcoming US government inflation report.

Additional measures aimed at bolstering the Chinese property market failed to improve market sentiment. Hong Kong’s Hang Seng index dropped 2.1% to 17,716.47, while the Shanghai Composite index declined by 0.9% to 2,945.85.

Today, Beijing has become the latest city to reduce minimum down-payment ratios and mortgage interest rates to support the property sector. 

Other Chinese cities have implemented similar measures in line with national policies designed to attract buyers back into a market that has struggled since the government’s crackdown on excessive borrowing by developers. This crackdown led to numerous companies defaulting on their debts, causing a prolonged downturn impacting the entire economy.

In Tokyo, the Nikkei 225 index fell 0.8% to 39,341.54 due to concerns about further weakening of the Japanese Yen. 

Earlier today, the US dollar was trading at 160.52 yen, having broken through the 160 level the previous day to reach its lowest point since 1986. Japanese officials have cautioned that they may intervene in the market to address this trend, which has both positive and negative impacts on the economy. 

In Australia, the S&P/ASX200 declined by 0.3% to 7,759.60. Taiwan’s Taiex decreased by 0.4% and Bangkok’s SET dropped by 0.7%.