Asian equity markets were sinking across the region as traders digested the prospect of further U.S. interest-rate increases and rate hikes from other global central banks.\n\nHong Kong’s Hang Seng Index led the decline, down 1.7% on a return to trading after a holiday. Mainland Chinese markets were closed.\n\nJapan’s Nikkei 225 fell 1.5%. The drop came despite the Japanese yen hitting its lowest level against the dollar since November last year. The dollar was up 0.1% to 143.19 yen as diverging monetary policy took its toll on the Japanese currency. Last year, Japanese authorities launched verbal interventions when the dollar rose to more than 144 against the yen.