On Monday, Asian stocks were cautious, with Chinese markets staying steady, as a jump in coronavirus infections across the region over the weekend dampened investor optimism, while oil remained at 2-1/2-year highs.

MSCI’s broadest index of Asia-Pacific stocks outside Japan was down a smidgeon at 702.57 at the time of writing. The Australian stock market fell by 0.2 percent. The benchmark KOSPI in South Korea and the Nikkei in Japan both scarcely changed.

Investors were concerned about an increase in coronavirus infections in Asia, with Sydney, Australia’s most populous city, going into lockdown after a cluster of cases involving the highly dangerous Delta strain grew.

In Indonesia, the number of cases is at an all-time high, and Malaysia’s lockdown is due to be prolonged. Bangkok and other regions in Thailand have also imposed additional limitations.

The CSI300 index was up 0.2 percent, indicating that Chinese stocks were slightly higher. Profit growth for China’s industrial enterprises fell again in May, according to data released over the weekend, as rising raw material prices pinched margins and dragged on factory activity.

Investors will be watching China’s official factory activity, which is coming on Wednesday. The manufacturing index is predicted to drop from 51 to 50.7. Later this week, the Caixin Manufacturing PMI for the private sector will be released.

Global stock markets hit new highs last week, bolstered by news of a bipartisan US infrastructure pact and weaker-than-expected US inflation.

Over the next eight years, the infrastructure plan will cost $1.2 trillion, with $579 billion in new spending.

“Investors are keeping a close eye on President Biden’s bipartisan infrastructure proposal as it moves through Congress. Investment in renewables and EV infrastructure may significantly enhance demand, according to the package “In a note, ANZ analysts wrote.

Oil prices climbed to their highest since October 2018 in early Asian trading on expectations demand growth will outstrip supply and OPEC+ will be cautious in returning more crude to the market from August.

Brent futures rose 12 cents to $76.30 a barrel, while U.S. crude added 13 cents to $74.18.

On Friday, the S&P 500 rose 2.7% for the week, its strongest weekly gain since early February after data showed a measure of underlying inflation rose less than expected in May, easing fears of a sudden tapering in stimulus by the Federal Reserve.

The Dow limbed 0.7% while the tech-heavy Nasdaq dropped 0.06% after holding near the previous session’s record high.

Later in the week, a closely-watched U.S. jobs report will be released for June which could point to strong labor demand.

Yields for benchmark 10-year U.S. Treasuries , jumped back above 1.50% to close out a week in which rates notched their largest gains since March.

Monetary and fiscal stimulus around the world in response to the COVID-19 pandemic is boosting financial assets, despite an uneven pace of recovery between regions.

President of the Boston Federal Reserve Bank, Eric Rosengren, cautioned on Friday that a build-up of financial stability risks connected to low interest rates could lead to another slump, interrupting the labor market recovery and obstructing a return to full employment.

The US dollar was marginally higher against a basket of other currencies, trading at 91.846.

The Japanese yen fell to 110.65 per dollar, while the euro fell to $1.1925.

Gold prices fell 0.4 percent to $1,771.9 an ounce, owing to the strengthening of the dollar.