The euro started on the front foot after conservatives won a closely watched election in Germany, with leader Friedrich Merz urging the speedy formation of a new coalition government.
After a healthy performance on Friday, Asian investors struggled to maintain momentum after big losses in New York, where the Nasdaq lost more than two percent
The selling came after a report showed activity in the key services sector hit a 25-month low in February, while separate data indicated consumer sentiment dived almost 10 percent from January.
Meanwhile, another study revealed that expectations for inflation hit a three-decade high.
The readings follow a recent run of figures pointing to a softening of the labour market and prices continuing to rise faster than the Federal Reserve's target rate.
There have been increasing fears since Donald Trump regained the US presidency that his plans to impose import tariffs, and slash taxes, immigration and regulations would reignite inflation.
That has led investors to scale back their expectations for how many interest rate cuts the Fed will make this year.
Hong Kong advanced in early Asian trade, building on Friday's blockbuster rally fuelled by tech firms, particularly an eye-watering rise of more than 14 percent in ecommerce titan Alibaba.
The Chinese firm piled on more than one percent, while JD.com was up 0.9 percent.
However, while Singapore also edged up the rest of the region struggled.
Shanghai, Sydney, Seoul, Taipei, Manila, Jakarta and Wellington were all in the red.
The euro got a lift from news that Merz's CDU/CSU alliance won more than 28 percent, according to projections, crushing the Social Democrats (SPD) of outgoing Chancellor Olaf Scholz, which came third.
The far-right Alternative for Germany (AfD) came second, almost doubling its score to over 20 percent.
Merz said he wanted to quickly form a government, warning that as Trump is driving rapid and disruptive changes, "the world isn't waiting for us".
"Markets will like that, presuming it is achieved," said National Australia Bank's senior forex analyst Rodrigo Catril.
Oil prices extended losses after dropping as much as three percent on Friday as the weak US data sparked demand fears, while there are also growing expectations Trump will ease the sanctions that have limited Russian oil exports.
- Key figures around 0230 GMT -
Hong Kong - Hang Seng Index: UP 0.1 percent at 23,494.24
Shanghai - Composite: DOWN 0.3 percent at 3,370.56
Tokyo - Nikkei 225: Closed for a holiday
Euro/dollar: UP at $1.0521 from $1.0462 on Friday
Pound/dollar: UP at $1.2682 from $1.2628
Dollar/yen: UP at 149.45 from 149.32 yen
Euro/pound: UP at 82.96 pence from 82.81 pence
West Texas Intermediate: DOWN 0.2 percent at $70.27 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $73.97 per barrel
New York - Dow: DOWN 1.7 percent at 43,428.02 (close)
London - FTSE 100: FLAT at 8,659.37 (close)
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