sydney jan 31 reuters  asian share markets made a cautious start to a week that is likely to see a rise in uk interest rates and mixed reports on us jobs and manufacturing while surging oil prices added to worries over inflation data out on sunday showed chinas factory activity slowed in january as a resurgence of covid19 cases and tough lockdowns hit production and demand read more the standoff over ukraine remains a thorn in the markets side with concerns a russian invasion would also cut vital gas supplied to western europe read more lunar new year holidays made for thin conditions and mscis broadest index of asiapacific shares outside japan miapj0000pus edged down 01 in slow trade japans nikkei n225 dipped 03 as data on industrial output and retail sales undershot forecasts sp 500 futures and nasdaq futures both eased 03 undoing some of fridays bounce the bank of england is likely to hike rates again this week continuing the global trend toward tighter policy the european central bank also meets but is expected to stick to its argument that inflation will recede over time read more markets have swung to pricing in five hikes from the federal reserve this year to 125  though investors still see rates peaking at a historically low 17520 analysts at bofa think that is not nearly hawkish enough we point out that markets have underpriced fed hikes at the start of the last two hiking cycles and we think that will be the case again says bofa chief economist ethan harris starting in march we expect the fed to start raising rates by 25bp at every remaining meeting this year for a total of seven hikes with four more hikes next year he adds this would take the terminal rate to 275300 by the end of 2023 which should slow down growth and inflation the fed diary is rather sparse this week with only three regional presidents scheduled to speak but there is plenty of data highlighted by the ism readings on manufacturing and services and the january jobs report the headline payrolls number is expected to be soft given a surge in coronavirus cases and adverse weather the median forecast if for a rise of just 155000 while forecasts range from a gain of 385000 to a drop of 250000 we expect nonfarm payrolls to rise by only 50000 in january and for the unemployment rate to hold steady at 39 said analysts at barclays in a note we see downside risk to our forecast given the 88 million adults that were not working during the week of jan 11 in order to care for someone sick or they themselves were sick the hawkish turn by the fed has seen us 10year treasury yields spike 27 basis points this month to 178 making bonds relatively more attractive compared to equities and particularly growth stocks with stretched valuations it has also bolstered the us dollar which has jumped 17 so far this moth against a basket of its main rivals to the highest since july 2020 at 97441  the euro shed 17 last week alone to its lowest since june 2020 and was last trading at 11151  the dollar even gained on the safe haven yen rising 13 last week to stand at 11527 yen  higher yields have been a deadweight for gold which pays no return and the metal was stuck at 1789 an ounce  having shed 24 last week oil prices were near sevenyear peaks having climbed for six weeks straight as geopolitical tensions exacerbated concerns over tight energy supply brent rose 94 cents to 9097 a barrel while us crude added 89 cents to 8771 per barrel