Traders rotate out of stocks and into bonds on worries about entrenched inflation in the US and the Trump administration’s tariffs.

Asian equities were largely lower despite a weaker U.S. dollar overnight, as Japan outperformed and India underperformed.

The fresh China tariffs, in addition to the 10% tariff levied on Feb 4, coincide with the start of China's annual parliamentary meetings on Wednesday, a set-piece political event where Beijing is expected to unveil its main economic priorities for 2025.