Rate cuts by China failed to save regional sharemarkets from losses on Monday as investors were beset by global growth fears and the prospect of more policy tightening before the Jackson Hole gathering of central bankers.

The yield on the 10-year US Treasury benchmark inched closer to 3 per cent after Germany reported a record increase in producer prices on Friday, largely due to surging energy costs. The key US bond rate last stood at 2.99 per cent, its highest in one month.