Asia Stocks weaker and dollar slip due to FED weigh

Asian stocks were slightly weaker early on Monday, following Wall Street's declines and the G20's decision to drop a pledge to avoid trade protectionism, while the Federal Reserve's seemingly dovish stance last week continued to drag the dollar lower.

MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) was fractionally lower. Japan is closed for a holiday.

On Friday, Wall Street was flat to negative, dragged lower by bank shares that fell along with Treasury yields.

Financial leaders from the world's biggest economies reiterated their warnings against competitive devaluations and disorderly foreign exchange markets at the meeting in the German town of Baden-Baden over the weekend.

But they failed to agree on a commitment to keep global trade free and open, highlighting a global shift toward protectionism.

"Essentially it's a result of the U.S. protectionist stance, something (President Donald) Trump has been very clear on and the market is well aware of this,".

"Importantly we saw other leaders such as (Japanese Prime Minister) Shinzo Abe and (German Chancellor) Angela Merkel come out publicly supporting free trade, and for now the protectionist stance remains constrained to the U.S. It would be more concerning if this began spreading to other countries."

The dollar, however, didn't react to the statements from the meeting, hovering close to its near-three-week low touched on Friday. It traded 0.1 percent lower at 112.57 yen