Asian equities fell on the BoE rate announcement. Germany kicks off the PMIs today with the first at 08:30 GMT.

On Friday, the majority of Asian markets fell strongly as fears over tightening monetary policy were stoked by the Bank of England's larger-than-expected rate increase and by a stronger-than-expected reading on consumer inflation in Japan.

Along with the BoE decision, the slightly hawkish testimony of Fed Chair Jerome Powell before Congress, who said that the bank might hike rates at least two more times this year, hurt risky markets.

Concerns about tightening global monetary policy increased as a result of the two causes, and investors overwhelmingly sold risky, rate-sensitive assets.

The weakest performance in Asia was Hong Kong's Hang Seng, which fell 1.8% in catch-up trading following a break on Thursday.

Following higher-than-anticipated inflation, Japanese markets fell.

A figure that indicated inflation excluding food and fuel expenses soared to a 42-year high in May, despite core inflation reading lower than the previous month, showing that underlying Japanese inflation remained strong.

The Bank of Japan has repeatedly stated that it has no intentions to change its ultra-loose policy in the foreseeable future, but the pattern suggests that pressure to tighten policy is growing.

According to official data released earlier today, British retail sales unexpectedly increased in May compared to April, showing the majority of consumers were managing the strain of high inflation on their purchasing power.

Retail sales volumes increased by 0.3% on a monthly basis, according to the Office for National Statistics, following an increase of 0.5% in April and confounding predictions in a Reuters poll of analysts for a decline of 0.2%.

Key Developments Today:

• German at PMI at 08:30 GMT
• Eurozone at PMI 09:00 GMT
• UK PMIs at 09:30 GMT
• US PMI at 14:45 GMT

(Sources: investing.com, reuters.com)