Asian markets got off to a shaky start this week as anxieties about rising interest rates gripped investors.

The Culprit? Rate Jitters: The primary concern driving the sell-off is the upcoming release of US inflation data, known as the Consumer Price Index (CPI). A higher-than-expected inflation reading could prompt the US Federal Reserve (Fed) to raise interest rates more aggressively, dampening investor sentiment.

Fed in Focus: The Fed's policy meeting later this week is another factor weighing on markets. Investors are anxiously awaiting clues about the pace of future rate hikes, which could significantly impact global financial conditions.

Bloodbath Across Asia: The selling pressure was widespread across Asian markets. Major indices in China, Japan, South Korea, and India all dipped into negative territory.

What to Watch Next:

• US CPI Data Release: This key data point, due out this week, will be closely scrutinized. A significant rise in inflation could exacerbate the current market jitters.
• The Fed's Policy Decision: The outcome of the Fed's meeting will be a major event for global markets. Investors will be parsing the Fed's statement for any indications of the pace and extent of future rate hikes.

Uncertain Future: The coming days will be crucial for Asian markets. The direction they take will depend heavily on the US inflation data and the Fed's policy stance.

Will the data calm investor nerves, or will it spark a further selloff? Only time will tell.