Positive speculation in China led the equity market to bounce back on Friday but was limited over the weekend by denials from Beijing authorities.
Friday's New York trading session was heated by news of China's easing of zero-Covid policy restrictions, prompting equities to rally as the dollar eased.
However, the rally was broken over the weekend when health officials reiterated their commitment to a 'dynamic cleanup' approach to Covid cases in China.
According to NAB economist Tapas Strickland, the notion that China will relax its zero-Covid policy may not materialize until next March.
This is because China is about to experience winter and it gives the impression that the people of the Great Wall have to live with Covid during the New Year is not something good for the economy.
In addition, the data of the United States (US) mixed with the rising unemployment rate made investors reassess the economic condition of Uncle Sam's country.
In the meantime, the situation this morning saw Asian equities open positively with Japan's Nikkei 225 and Topix up 0.75% while South Korea's Kospi climbed 0.86% and Australia's S&P/ASX 200 added 0.43%.
Overall, Asian equities are still experiencing a rebound with the broader MSCI Asia Pacific index of shares outside Japan jumping 0.4%.
On the other hand, the main focus this week among investors will be on the upcoming Congressional elections tomorrow while US inflation data is scheduled to be published on Thursday.
Also assessed by investors were US consumer sentiment data over the weekend and economic growth readings in Britain.
