Australia

Australian shares are set to open lower, after US stocks end lower, yields up.

ASX futures were down 0.4% or 33 points as of 8:30am on Tuesday, suggesting a lower open.

U.S. stocks started the week broadly lower after Fed Chair Powell said over the weekend that officials don't have to rush to decide on a rate cut, and the ISM services report for January beat expectations.

DJIA fell 274 points, or 0.7%, to 38380, the S&P 500 lost 0.3% to 4942 and the Nasdaq slipped 0.2% to 15597.

In commodity markets, Brent crude oil rose 0.9% to US$78.05 a barrel while gold was down 0.7% to US$2,024.96.

In local bond markets, the yield on Australian 2 Year government bonds was up at 3.77% while the 10 Year yield was also up at 4.09%. US Treasury notes were up, with the 2 Year yield at 4.48% and the 10 Year yield at 4.16%.

The Australian dollar hit 64.85 US cents down from its previous close of 65.11. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 98.70.

Asia

Chinese shares ended mostly lower as investors continued to be wary and trading remained volatile. A fairly upbeat reading from a private gauge of service-sector activity didn't do much to brighten the mood ahead of the Lunar New Year break, with concerns about the health of the economy persisting. The benchmark Shanghai Composite Index fought to stay above the key 2700 level, managing to regain ground late in the session to finish at 2702.19, but still 1.0% lower. The Shenzhen Composite Index slid 3.9% to 1478.69 but the tech-heavy ChiNext Price Index bucked the trend, rising 0.8% to finish at 1600.33. Software-services stocks lead the losses. 360 Security Technology slid 5.6% and iFlytek shed 1.0%. Among major stocks, EV battery maker CATL gained 4.1%.

Hong Kong's Hang Seng Index closed 0.15% lower at 15510.01 amid weak sentiment, as investors continued to wait for economic fundamentals to improve. "Investor sentiment remains downbeat for now" even after China's securities regulator said over the weekend that it would crack down on illegal activities to stabilize the market, the ING economics team wrote in a research note. Property and consumer stocks weighed on the index. Longfor was down 4.1%, while Hang Lung Properties was 3.7% lower. Among consumer names, Chow Tai Fook Jewellery lost 3.3%, while Sunny Optical Technology fell 2.7%. Among gainers, WuXi AppTec gained 4.0%, while Wuxi Biologics rose 3.1%, helping the benchmark index to recoup some of its losses.

Japanese stocks ended higher, led by gains in auto and financial stocks, as the yen weakened and the government bond yield curve shifts higher after strong U.S. jobs data. Mazda Motor climbed 4.1% and Denso gained 3.9%, while Mizuho Financial Group advanced 4.2% and Mitsubishi UFJ Financial Group added 3.2%. The Nikkei Stock Average rose 0.5% to 36354.16. The 10-year Japanese government bond yield was up 6 basis points at 0.715%. Earnings are in focus, with Mitsubishi UFJ set to announce results later in the day.

Indian shares closed lower, tracking most Asian markets. The benchmark Sensex ended 0.5% lower at 71731.42.Bajaj Finserv and Bajaj Finance fell 2.3% and 3.5%, respectively, leading losses. State Bank of India lost 1.1% after its 3Q net profit declined 29% on year. Axis Bank lost 0.6% and ICICI Bank was down 0.1%. Bharti AirTel closed 3.2% lower after its 3Q net profit missed analysts' expectations. Meanwhile, Tata Motors led gains, rising 5.5% after 3Q net profit more than doubled on year.

Europe

European shares edged lower and Wall Street loses ground after a stronger-than-expected U.S. ISM services report boosted the dollar. The Stoxx Europe 600, FTSE 100, DAX and CAC 40 all retreated about 0.1%, with banks and retailers among the biggest losers. Vodafone dropped 3% after solid 3Q results failed to dispel investor concerns about various uncertainties facing the mobile-phone operator. Brent crude rose 0.9% to $78.05 a barrel. "Yet more good US data has bolstered the dollar and sent US stocks into a tailspin, as markets continue to write down any last hopes of a March rate cut," IG analyst Chris Beauchamp wrote.

The FTSE 100 index closed Monday down 0.03% to 7612 points, mainly dragged by oil-exposed companies and miners, after positive U.S. data hit hopes of a rate cut in March, IG chief market analyst Chris Beauchamp said in a note. "Today's ISM services PMI seems to have dealt the death blow to any lingering hopes that a March rate cut was still on the cards. It looks like the relentless optimism seen so far on Wall Street is finally beginning to collide with reality," he says. Fashion retailer JD sports was the index's worst performer, down 5.3%, followed by Airtel Africa and Ashtead Group, down 4.4% and 4.3% respectively. Grocer Ocado led a shortlist of risers, up 3.6%, followed by GSK, up 3.2%.

North America

U.S. stocks started the week broadly lower after Fed Chair Powell said over the weekend that officials don't have to rush to decide on a rate cut, and the ISM services report for January beat expectations.

DJIA fell 274 points, or 0.7%, to 38380, the S&P 500 lost 0.3% to 4942 and the Nasdaq slipped 0.2% to 15597.

Materials, utilities and real estate took the biggest hits, while the dollar and Treasury yields rose.

Shares of Caterpillar and Tyson gained 2% after reporting quarterly results, while McDonald's lost 3.7% after saying the conflict in the Middle East weighed on its profits.

Estee Lauder jumped 12% after reporting earnings and announcing layoffs.