Sentiment was also clouded by data showing that Chinese consumer inflation remained almost non-existent despite a raft of stimulus measures in the final three months of last year.

The former and next president said on his Truth Social account that he would hammer the United States' largest trading partners in response to the illegal drug trade and immigration

A win for Republican Donald Trump is expected to boost the dollar, restoke inflation and send Treasury yields higher owing to his pledges to slash taxes and impose tariffs on imports

Asian markets diverged Monday as investors awaited key US data and a Federal Reserve policy decision after labour figures last week suggested the US central bank was on course to deliver a soft landing for the economy while reining in inflation.

Asian markets continue their downward trend, with Japan failing more than 7% in two days.

Asian stocks open higher after turmoil on financial markets saw European and US indexes tumble following another oil price fall.